The end of fossil fuel subsidies : commissionner Hoekstra stays on course

12 February 2025

On 6 February, the European Commissioner for Climate Action, Energy and Clean Growth, Wopke Hoekstra, presented his priorities to the European Parliament’s FISC committee. During this exchange, the new Dutch commissioner firmly maintained his line by defending the Green Deal and an ambitious revision of the Energy Taxation Directive that would usher in nothing less than the end of fossil fuel subsidies in Europe.  

« The goal of limiting global warming to 2 degrees by 2100 is dead  »

While 2025 marks ten years since the signing of the Paris Climate Agreement and only 10 out of 197 countries have submitted their ‘climate roadmaps’ on time, a new study published on 3 February has just buried the goal of keeping global warming below 2°C compared to pre-industrial levels by the end of the century. One of its authors, Professor James Hansen, told the British newspaper The Guardian that ‘The goal of limiting warming to 2°C by 2100 is dead, because fossil fuel consumption is still increasing and will not stop’.  

For almost half a century, the scientific community has been unanimous: the massive use of fossil fuels is the primary cause of global warming. Overcoming our dependence on fossil fuels by transforming our economies and our production methods is an absolute priority. With this in mind, scientists agree that the introduction of a carbon tax and a tax on all fossil fuels, the incomes of which would be used for public purposes, is the most effective and socially fair solution to this challenge. 

Tens of billions of euros for fossil fuels

Yet within the European Union, tens of billions of euros of public money continue to subsidise their use massively. According to some of the most recent analyses, subsidies for fossil fuels have reached 123 billion euros in 2022, mainly due to the aid introduced by EU Member States to offset the rise in energy prices caused by the war in Ukraine.  

In order to achieve the greenhouse gas emission reduction targets set out in the Green Deal and ‘Fit for 55’ package, the European Commission has proposed to revise the Energy Taxation Directive in 2021. With this revision, the European Commission intends to abolish the tax exemption on fuel applied to certain particularly polluting sectors such as aviation, the maritime sector and fishing.  

For the European fishing sector, it is estimated that the amount of this tax exemption was between 759 million and 1.5 billion euros in 2019. 

>>> Read our analytical note here  <<<

Some impervious Member States

Although the revision of the Energy Taxation Directive represents a historic opportunity to end fossil fuel subsidies in Europe, some Member States strongly opposed this text at the last ECOFIN meeting in December 2024.   

>>> Read our article here. <<<

Malta, Cyprus, Greece and Italy have notably used their influence to ensure that the aviation and maritime sectors continue to be exempt from tax, despite their catastrophic environmental impact and the shrinking window of opportunity for action.   

Hungary, which held the Council presidency from July to December 2024, went even further, proposing to maintain a mandatory tax exemption for the maritime and aviation sectors (including fishing) until at least 2035. This would make the EU’s environmental objectives unattainable. As this proposal did not receive unanimous support, the matter was referred to the next presidency (Poland).   

The political courage of Commissioner Hoekstra

Among the influential voices that have spoken out in favour of an end to fossil fuel subsidies and a tax on the most polluting sectors, Commissioner Hoekstra has clearly distinguished himself and shown true political courage. He has indeed stayed the course initiated under the Green Deal and supported a more ambitious agreement despite political pressure to curb any ambition.  

Although the Commissioner for Climate Action, Energy and Clean Growth, Wopke Hoekstra, has no voting rights in the Council (the institution that must decide unanimously on the fate of the Energy Taxation Directive), he enjoys other prerogatives and significant influence as a representative of the European Commission. 

Citizens mobilised to move away from fossil fuels

Ahead of this hearing, BLOOM launched a mobilisation in support of the Commissioner. The aim was to send a strong signal and show him that he has the massive support of citizens in his intention to move away from fossil fuels and tax the most polluting sectors.  

The citizens responded and their demands were heard by the Commissioner.  

On 6 February, during his speech at the European Parliament’s FISC committee (the committee in charge of the dossier), Commissioner Hoekstra clearly indicated that he wanted to move forward as quickly as possible to conclude the revision of the Energy Taxation Directive while maintaining a level of ambition that is significantly higher than that prevailing in the Council. He also specifically stated that political leaders must do more to end subsidies for fossil fuels. 

The revision of the ETD is back on the European agenda

Although this issue no longer received any political impetus, to the point of being described as a ‘dead issue’ by the MEPs who follow it, it has been put back at the top of the agenda.   

When asked by MEP Rasmus Andresen about the next steps, the Commissioner replied that he was currently organising a discussion with the various Member States in order to find points of convergence and raise the level of ambition.  

The fight to end subsidies for fossil fuels is therefore far from over, but a first breakthrough has been achieved.   

Image : CC-BY-4.0: © European Union 2023– Source: EP