The EU government is trying to diminish the negative effect of a sharp rise in energy prices. Most enterprises and citizens of European countries have faced serious problems.
However, leading European industrialists are sure that the European Union should not spend billions to subsidize fossil fuel consumption. Instead, it is better to reduce demand and switch to renewable energy sources.
The government is “spending all our money on short-term painkillers rather than curing our disease,” Philippe Delorme, head of European operations at industrial group Schneider Electric said. “There is an urgent need to cut reliance on these carbon-heavy fuels and address inefficiencies in energy use,” he added.
According to the International Energy Agency, global subsidies for fossil fuel consumption exceeded $1 trillion in 2022. In other words, the government spent a record amount of money.
The data provided by economic think-tank Bruegel showed that since September 2021, the EU member states have allocated more than €657 billion to support consumers amid growing energy prices. For example, Germany alone accounts for €265 billion.
“All governments should target only vulnerable consumers and incentivize them to go green,” Simone Tagliapietra, author of the Bruegel report, said.
“If we could spend half or one-third of that to accelerate the transition, that would be much better for Europe and its industries,” Benoit d’Iribarne, head of manufacturing at building materials giant Saint-Gobain, also expressed his view on the issue.
Not so long ago, experts at analytical center Ember reported that by the end of 2022, the EU countries had received most of their energy from renewable sources instead of gas for the first time in history.
Last year, wind and solar power plants generated 22% of energy in the European Union, whereas gas-fired power plants gave about 20% and coal-fired power plants provided 16%.
