Two thirds of the so-called capacity mechanism was estimated to support coal power. Photo: © Shutterstock – Voyagerix

Hidden subsidies for coal, gas and nuclear

New research by Greenpeace reveals that €58 billion goes to supporting coal, gas and nuclear in the form of so-called capacity mechanisms – a controversial type of subsidy given supposedly to safeguard supply in case extra power is needed, although the plants that receive the subsidies are rarely called on.

To date, capacity mechanisms have cost consumers €32.2 billion, and a further €25.7 billion has been earmarked until 2040. The countries handing out the most capacity mechanisms are Spain and Poland (€17.9 billion and €14.4 billion respectively), followed by Belgium, Ireland and the UK (all around €6 billion) and Germany (around €3 billion).

Greenpeace researchers were able to identify the type of fuel receiving the subsidy in around half of the cases, with 66 per cent of that money going to coal-fired plants.

Whilst the European Commission and Parliament want to restrict capacity mechanisms, national governments have rejected such restrictions. Poland, the UK, and Greece are leading the charge in favour of capacity mechanisms so that they can continue to subsidise their unprofitable fossil fuel and nuclear power plants.

Link: https://www.greenpeace.org/eu-unit/issues/climate-energy/1519/exposed-e5...

Coal powerEuropean UnionFossil gas

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Main menu

Hidden subsidies for coal, gas and nuclear

In this issue

EU needs net zero emissions by 2040

Editorial: Call for Europe to phase out coal by 2025

Ship emissions debated

What goes up must come down

Levels of long-lived greenhouse gases rose again in 2017

Limiting global warming to 1.5°C is possible

Harmful air pollution levels still much too high

Phasing out coal in Europe

Cut methane to reduce ozone

Citizens support diesel bans to tackle air pollution

EU auditors urge tougher action on air quality

Climate targets for trucks and cars in the making

Livestock sector must contract

European lunches leave carbon footprints overseas

1.5°C is the new 2°C

A 1.5°C target is needed to save the Mediterranean region

In Breif

Electric ferries between Sweden and Denmark

Heavily polluting Romanian power plant challenged

EU rules needed to stop truck NOx fraud

EU auditors critical of CAP proposal

Publications

Food for Thought

Northern forests, climate change and the UNFCCC

EU climate targets aligned with the Paris agreement’s 1.5°C objective

Baltic Sea Offshore Wind Collaborative-Learning project

Air pollution in Europe and children’s health

Climate Change: A Himalayan Odessey

No further discussion needed. The agreed global goal is to limit temperature rise to 1.5°C

Fossil-free electricity 2021

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