13 energy companies call on EU to cap state subsidies for major polluters

• 6 years ago (2017-06-29)
• David Flin

Emissions 57 Europe 1061

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A coalition of 13 major energy industry firms, including Siemens, Shell, Statoil, Solar Power Europe, and Total, have launched a new initiative to limit the amount of state aid subsidies to power plants with high emission levels across the European Union.

The Make Power Clean initiative comes as a response to the European Commission’s proposal to create a carbon eligibility criteria which requires companies receiving state aid for power generation to limit their CO2 emissions.

The news comes a month after Denmark announced plans to phase out subsidies for renewables by 2030. The announcement also follows an advertising campaign by the Climate Leadership Council, which includes the oil giants ExxonMobil, BP, and Shell, to boost support for a $40 per ton carbon tax on emissions.

The group is proposing a cap of 550g of CO2/kWh for generators receiving capacity mechanism subsidies. It is also calling for a transparent carbon criterion that aligns with the investment rules of the European Investment Bank.