EU Parliament calls on COP28 to end all fossil fuel subsidies by 2025

The European Parliament’s environment committee votes to end all fossil fuel subsidies in the EU “as soon as possible and by 2025 the latest” and urges COP28 participants to do the same.

PHOTO: Getty Images

Last month, European climate ministers formally committed to push nations to peak fossil fuel consumption within this decade and to phase out unabated fossil fuels by 2050. This will be the EU's official position at the upcoming COP28 climate summit which will take place in Dubai from 30 November to 12 December.

The EU bloc also endorsed a global phase-out of fossil fuel subsidies, but did not set a specific deadline then.

What is new now is that EU member states have been urged to “urgently end all direct and indirect fossil fuel subsidies” by 2025, according to a resolution passed by the European Parliament's Committee on Environment, Public Health and Food Safety (ENVI). This call to action will also be extended to governments worldwide at the COP28 summit.

The resolution aims to ensure that developing countries, as well as EU nations, contribute to meeting the $100 billion/year climate finance target this year. It also encourages countries to set even higher climate finance targets after 2025.

ENVI Members of the European Parliament (ENVI MEPs) have voted for a dedicated EU climate finance mechanism to help the EU meet its climate commitments.

The ENVI MEPs have urged COP28 participants to mobilise the “loss and damage fund” where major emitting nations, including EU member states, will contribute their fair share.

The loss and damage fund was conceived at COP27 last year as a way to provide financial assistance to climate-vulnerable developing economies amidst the urgent need for focused climate finance. Several financing tools were considered for this fund, including windfall taxes on fossil companies, debt loss and damage swaps, international taxes or a dedicated finance facility for loss and damage under the UN Framework Convention on Climate Change.

The tabled mandate also calls on COP28 participants to set a global goal to triple renewable energy and double energy efficiency by 2030. Moreover, it advocates for a “tangible phase out of fossil fuels as soon as possible, including halting all new investments in fossil fuel extraction.”

The full house of the European Parliament will vote on the resolution during the plenary session on 20-23 November.

Meanwhile, European Commission’s President Ursula von der Leyen has urged COP28 participants to develop a proposal for global carbon pricing and true carbon credits to mitigate the cost burden of green transition, especially on developing nations.

The shipping industry has proposed targeted climate investments at a massive scale as a way to facilitate a green transition in accordance with IMO's guidelines.

By Konica Bhatt

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