Government Plans Reform of Energy Subsidies

The responsible parties in the three-party coalition have reaffirmed their reform plan for climate and energy subsidies with a fact-finding mission by summer. The subsidies need to become more efficient quickly, not least because of the budget crisis. Every euro should be squeezed for as much benefit as possible for the environment, population, and economy. The FPÖ and the Greens have mocked and criticized the government and its plan.

Subsidy Reform as a Response to the Budget Crisis

As reported, the Climate and Energy Fund, which amounted to 660 million euros last year, must be reviewed. The energy efficiency subsidy also requires a new, correct path. An impact analysis is also appropriate for the EAG subsidies (Renewable Expansion Act), which amount to one billion euros annually, and various projects for the expansion of wind, PV, and hydropower (environmental subsidies domestically, renovation offensive, ...).

"We need more impact from the subsidies," said Climate and Agriculture Minister Norbert Totschnig, Energy State Secretary Elisabeth Zehetner (both ÖVP), and Josef Schellhorn (NEOS) in a joint statement to the APA. "It's about targeted investments in Austria's future at the location - with clarity, efficiency, and responsibility."

Criticism from the FPÖ and the Green Party

ÖVP, SPÖ, and NEOS are "unable to quickly implement urgently needed reforms," criticized FPÖ General Secretary Schnedlitz. "The industry strategy is supposed to take until the end of the year, now the subsidies until summer. The largest and most expensive government of all time apparently cares not about work, but only about cashing in." Cutting back the funds of the Climate and Energy Fund is long overdue, the EU climate goals are unrealistic, said the Freedom Party member in a response.

The Greens suspect the evaluation is just a "cover" for a "clear-cutting." "What is being sold as a sober analysis threatens to become the next clear-cutting of the so important climate subsidies," said former Climate Protection Minister Leonore Gewessler on Sunday via a press release. "If in the end there is less climate protection, less renewable energy, and less future for Austria, then the evaluation threatens to become an excuse for location-hostile cuts." Examining existing subsidies for their impact is ongoing government action. "But under the guise of increasing efficiency, slowing down the expansion of clean energy or questioning socially cushioned measures like heating replacement is pure forgetfulness of the future," said Gewessler.

Independent Review with Four Core Questions

The politicians have announced the commissioning of an independent institute. This institute is to "build on existing evaluations and comprehensively analyze the funding landscape." It involves four core questions. The first question is: "Which climate and energy subsidies contribute to achieving the EU's legal climate goals and have a targeted impact?" Furthermore, it will be examined "which of these subsidies save CO2, create incentives for behavioral change, generate added value, and simultaneously create jobs."

Main questions three and four revolve around the contribution that funding measures make to reducing energy import dependency and strengthening supply security, and how much CO2 was saved per subsidy euro spent. The entire funding landscape is to become "simpler, more efficient, more transparent." The goal is an "integrated climate and energy policy," which in turn is guided by three basic principles. These are "affordability and planning security for households and businesses," "supply security in times of global uncertainties," and "ecological effectiveness for a climate-neutral future."

According to the announcement, the funding structure will also be scrutinized. Currently, the processing is carried out by several bodies (federal, state, municipalities, ...) with different criteria and approaches. There is a need for "less complexity, more impact, clear responsibilities," according to ÖVP, SPÖ, and NEOS. Facts will be presented by the parties by summer.

Funding Commitments "Legally Secured" Until End of 2024

Based on the statements in the announcement, it is also evident how tight the money is given the billion-dollar budget gap. Totschnig also reassures regarding already granted commitments of public funds: "All funding commitments made until the end of 2024 will, of course, be paid out - this is legally secured."

(APA/Red)

This article has been automatically translated, read the original article here.