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Energy subsidies report highlights further reduction in 2024

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Total energy subsidies in the EU in 2024 amounted to €340 billion, 5% down on 2023 and significantly lower (-25%) than at the height of the crisis in 2022 (€457 billion), according to a new Commission Report on energy subsidies in the EU. The figure remains considerably higher than the historical average (€190 billion for the period 2015-2019). 

Analysing the different types of subsidies, the study shows an increase in the share of overall support for renewables (€76 billion) relative to 2023 (€55 billion). This is significantly below the historic average (€87 billion) - indicating an increase in the competitiveness of renewables. At the same stage, subsidies for fossil fuel in 2024 (€97 billion) were 20% down from 2023 (€121 billion) and 42% lower than the peak in 2022 (€168 billion) – but still well in excess of the 2015-2019 average (€60 billion). 

The report confirms further that there were no new commitments in 2024 to phasing out fossil fuel subsidies. And for those EU countries that have committed to a phase out, there are still no concrete final end-dates. The Commission concludes that much more needs to be done by EU countries in this regard if the EU is to meet its political aim to phase out fossil fuel subsidies and make Europe climate neutral by 2050. Accordingly, the Commission intends to adopt by the end of 2026 a proposal to update the Regulation on the Governance of the Energy Union and Climate Action, which will cover the phase-out of fossil fuels subsidies.

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