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Phasing out Environmentally Harmful Subsidies

Examples of EHS by category and the EHS inventory

Examples of environmentally harmful subsidies are provided here by four broad subsidy categories. The complete inventory prepared in the context of this study provides information on over 720 EHS identified in the EU. The EHS have been categorised by Member State, type of subsidy, economic sector, type of environmental impacts and relevant Sustainable Development Goals, type and magnitude of budget impacts, category of beneficiaries and other interested parties. If you would like to receive the inventory please write to the European Commission DG Environment.

Phasing out environmentally harmful subsidies in EU Member States

Current state of play

As part of the 8th Environment Action Programme (EAP), it was agreed to look further at environmentally harmful subsidies. In particular, complementing ongoing work on fossil fuel subsidies, it was agreed that a methodology should be developed in consultation with Member States, in 2023, to identify other environmentally harmful subsidies. This will allow Member States to identify these other environmentally harmful subsidies and report them regularly to the Commission, allowing for a Commission report on the level and type of such subsidies in the Union, and on progress made on phasing them out. Work is ongoing to develop this methodology, and public stakeholder consultation will be undertaken, possibly linked to the fitness check of the Polluter Pays principle.

More information

You can read more about the reform of EHS in the final report and the country case studies and factsheets compilation: 

A toolbox for reforming environmentally harmful subsidies in Europe

Country case studies and candidates for reform factsheets

Many international organisations have produced guidance material for the identification and assessment of EHS.