UK Coal Industry Gets Hundreds of Millions in Subsidies Each Year, Report Finds

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onMay 8, 2017 @ 00:00 PDT

The UK has given an average โ‚ฌ434.5 million (ยฃ368ย million) in subsidies to the coal industry each year between 2005 and 2016 new research by the Overseas Development Institute (ODI) hasย found.

The new report published today by ODI shows that European countries are continuing to support coal despite pledges to phase out the polluting fossil fuel by 2020 (or 2025 in the case of the UK andย Ireland).

According to the report, Europeโ€™s 10 largest carbon emitters โ€“ responsible for 84 percent of the continentโ€™s emissions โ€“ have given โ‚ฌ6.3 billion (ยฃ5.33 billion) in subsidies to coal each year over the pastย decade.

The study also found that the UK has a poor track record when it comes to transparency about reporting the countryโ€™s subsidies to coal. Britain denies that it gives any subsidies to the fossil fuel industry yet continues to hand out tax breaks year afterย year.

One of the reportโ€™s authors, Shelagh Whitley, head of the climate and energy programme at ODI, said: โ€œEuropean countries need to phase-out coal if they are to meet the Paris climate agreement targets, fight air pollution and support a change to low-carbon energyย systems.

โ€œHowever, as our research shows, governments are continuing to provide lifelines to coal by handing over new subsidies without which the coal industry would not be economicallyย viable.โ€

Despite the continued subsidies, however, coal is on the decline in Britain. Earlier this month the UK had its first coal-free day since the industrial revolutionย began.

But as the report notes, none of the coal subsidies in the UK have been put towards helping workers and communities dependent on the industry transition to new jobs or otherย opportunities.

In fact, only 14 percent of all coal subsidies provided in the 10 European countries examined goes towards support for workers and communities in the transition to clean energy. Of this, โ‚ฌ1 billion per year earmarked for such support was actually being diverted back toย coal.

โ€œGovernments in Europe must stick to their promise to shift to low-carbon and efficient energy systems,โ€ said Whitley, โ€œand focus any remaining subsidies on supporting workers and communities to move away from fossilย fuels.โ€

Photo: Wikimedia commons | CC BYSAย 3.0

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Kyla is a freelance writer and editor with work appearing in the New York Times, National Geographic, HuffPost, Mother Jones, and Outside. She is also a member of the Society for Environmental Journalists.

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