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Phasing out fossil fuel subsidies in the EU? Exploring the role of state aid rules

Nowag, Julian LU ; Mundaca, Luis LU orcid and Åhman, Max LU (2021) In Climate Policy 21(8). p.1037-1052
Abstract
The paper aims to identify and analyse potential legal avenues for phasing out fossil fuel subsidies (FFS) in the European Union (EU) using State aid rules. Our analysis reveals that the EU State aid rules would allow the European Commission to effectively target and monitor a vast number of FFS. From a policy perspective, the requirements for notification, examination, transparency, reporting, and recovery of unlawfully granted aid are of particular importance. The legal framework also provides avenues for the EU Commission to start a ‘Fossil Fuel Inquiry’, while providing important tools for civil society to apply pressure on states for the removal of FFS. Based on our legal analysis and pertinent literature, we discuss which of these... (More)
The paper aims to identify and analyse potential legal avenues for phasing out fossil fuel subsidies (FFS) in the European Union (EU) using State aid rules. Our analysis reveals that the EU State aid rules would allow the European Commission to effectively target and monitor a vast number of FFS. From a policy perspective, the requirements for notification, examination, transparency, reporting, and recovery of unlawfully granted aid are of particular importance. The legal framework also provides avenues for the EU Commission to start a ‘Fossil Fuel Inquiry’, while providing important tools for civil society to apply pressure on states for the removal of FFS. Based on our legal analysis and pertinent literature, we discuss which of these different FFS and corresponding estimates are likely (or not) to fall under the EU State aid rules. Despite inherent uncertainties, the EU State aid toolbox offers various possibilities to the EU to actively advance its climate change policy and comply with its international commitments to reduce FFS. (Less)
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author
; and
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Climate change policy, Fossil Fuel Subsidies, EU, climate change policy, EU State Aid, Energy Policy
in
Climate Policy
volume
21
issue
8
pages
1037 - 1052
publisher
Taylor & Francis
external identifiers
  • scopus:85113726578
ISSN
1752-7457
DOI
10.1080/14693062.2021.1965523
project
Energy Justice 2.0: Justice in Sustainability Transitions - Theme Pufendorf IAS
language
English
LU publication?
yes
id
349a07fb-e669-4953-ae7b-aabc1c827a91
date added to LUP
2021-08-25 09:04:05
date last changed
2024-06-15 15:11:10
@article{349a07fb-e669-4953-ae7b-aabc1c827a91,
  abstract     = {{The paper aims to identify and analyse potential legal avenues for phasing out fossil fuel subsidies (FFS) in the European Union (EU) using State aid rules. Our analysis reveals that the EU State aid rules would allow the European Commission to effectively target and monitor a vast number of FFS. From a policy perspective, the requirements for notification, examination, transparency, reporting, and recovery of unlawfully granted aid are of particular importance. The legal framework also provides avenues for the EU Commission to start a ‘Fossil Fuel Inquiry’, while providing important tools for civil society to apply pressure on states for the removal of FFS. Based on our legal analysis and pertinent literature, we discuss which of these different FFS and corresponding estimates are likely (or not) to fall under the EU State aid rules. Despite inherent uncertainties, the EU State aid toolbox offers various possibilities to the EU to actively advance its climate change policy and comply with its international commitments to reduce FFS.}},
  author       = {{Nowag, Julian and Mundaca, Luis and Åhman, Max}},
  issn         = {{1752-7457}},
  keywords     = {{Climate change policy; Fossil Fuel Subsidies; EU; climate change policy; EU State Aid; Energy Policy}},
  language     = {{eng}},
  number       = {{8}},
  pages        = {{1037--1052}},
  publisher    = {{Taylor & Francis}},
  series       = {{Climate Policy}},
  title        = {{Phasing out fossil fuel subsidies in the EU? Exploring the role of state aid rules}},
  url          = {{http://dx.doi.org/10.1080/14693062.2021.1965523}},
  doi          = {{10.1080/14693062.2021.1965523}},
  volume       = {{21}},
  year         = {{2021}},
}