A high-level group advising the Commission on energy issues has recommended phasing out environmentally harmful subsidies, as EU leaders prepare to endorse proposals for a common energy policy at a summit in Brussels on 8-9 March.
The report’s main conclusion is that public funds in support of environmentally harmful technologies should eventually be scrapped.
“Subsidies must serve the common interest while addressing market failures or otherwise they should be phased out,” the report states. “This is particularly the case for environmentally harmful subsidies.”
The report recommends that member states ensure that “the application of any subsidy is supported by a strategic plan with milestones and clearly articulated sunset clauses”.
But the report stops short of naming specific industrial sectors in which the group believes that subsidies should eventually be phased out.