News & Events

The Egyptian government has announced that it intends to cut gas and electricity subsidies to some 40 companies in energy intensive industries over the next three years.   The Egyptian Ministry of Trade and Industry estimates that energy intensive industries receive some 75% of subsidies to gas and 61% of subsidies to electricity.

The German government is set to phase out unprofitable coal mines by 2018, according to a plan agreed to by the government and unions in August.   The plan does not come cheaply; the federal and state governments will provide some 21.6 billion euros to help miners with the transition.

The German Ministry of Finance announced last month that it was commissioning an evaluation of the federal government's tax subsidy programs.

Following on the footsteps of an earlier Canadian complaint, Brazil has asked the World Trade Organization (WTO) to open up consultations between it and the United States over the latter's farms subsidies.

The European Parliament gave unanimous approval to a new reform package from the European Commission which seeks to de-couple subsidies to fruit and vegetable products. Under the new scheme, subsidies linked to production will be replaced with direct payments, in order to not encourage over production of fruit and vegetables and the associated low prices that come with it.

The European Commission (EC) announced last month that export subsidies to dairy products would be set at zero. The announcement followed a decision by the EU's dairy management committee to eliminate export subsidies to butter and cheese. Export subsidies to other dairy products have already been eliminated. Export subsidies vary in amount, depending on the market price of the commodity.

Canada has formally asked the World Trade Organization (WTO) to establish a panel to judge whether the United States has broken its commitments to limit agricultural subsides. Canada alleges that the US has violated its commitments to keep so-called amber box subsidies to agriculture under its US$ 19.1 billion a year ceiling.

Over the last several months the Spanish government has been negotiating with the wind power industry group Asociación Empresarial Eólica (AEE) in an effort to reach a compromise over proposed reductions to renewable energy subsidies. Renewable generation accounted for 18.8 percent of total energy generation in Spain last year, which the Ministry of Industry says is proof that the current levels of subsidies are not necessary.

A number of American Congressional leaders are in the process of drafting bills to support the production of liquid coal under the banner of energy independence, according to a report in the New York Times newspaper.