Home International News Bang Go Europe’s Green Subsidies

Bang Go Europe’s Green Subsidies

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As states cut their budgets, costly clean energy technologies — mainly solar and wind — are losing support across the EU. Worries are increasing that Europe’s economic woes will claim yet another victim: the green agenda.

The reactions rained down within minutes of the High Court ruling. “This is an almighty kick in the teeth for the government,” said David Hunt, chief executive of Eco Environments, a firm that installs solar panels.

Caroline Lucas, the Green MP, urged Chris Huhne, the energy and climate change secretary, to “admit you got it wrong ... and pull the plug on this legal merry-go-round”.

The outpouring was over the latest chapter in a saga the government set in motion last year when it cut in half the subsidies it offered for solar panels in homes and businesses. The industry sued. Last week, the High Court upheld an earlier ruling that found the cuts were illegal. The Department of Energy and Climate Change pledged last week to appeal against the decision.

Despite the triumphalism of Westminster’s adversaries, it was a small victory. Across Europe, cash-strapped governments have come to the same conclusion: we can’t afford to prop up renewable technology.

They are reacting accordingly. Subsidies for costly clean energy technologies, mainly solar and wind, are being slashed. With governments from Rome to Athens to London cutting basics such as pensions and healthcare, it is not surprising.

The cuts have, nonetheless, thrown thousands of jobs into peril and raised questions over whether Europe will meet its binding targets for emissions reduction. Worries are increasing that Europe’s economic woes will claim yet another victim: the green agenda.

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