The European Commission must produce an effective framework to tackle fossil fuel subsidies, writes James Nix.
James Nix is Director of Green Budget Europe, an expert platform on environmental fiscal reform.
There is a growing global awareness of the real cost of fossil fuels. Last week, the International Monetary Fund (IMF) estimated that global fossil fuels subsidies will reach $5.3 trillion in 2015 (6.5% of the global GDP).
The IMF study shows coal and oil to be the most heavily subsidised energy sources. In addition to encouraging CO2 emissions, these subsidies raise air pollution, which inevitably leads to poor health and premature deaths. The number of premature deaths from air pollution in the EU stands around 450,000 annually, running to tens of thousands per year in larger member states.
At least until very recently, the European Commission had been to the fore in addressing fossil fuel subsidies while also urging other governments to tackle fossil fuel subsidies.
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