As the Group of 20 major economies prepares to discuss phasing out fossil fuel subsidies this weekend, the European Union is considering 12 more years of state aid for coal, a draft European Commission document shows. The current EU subsidy regime expires this year, and European Competition Commissioner Joaquin Almunia says he intends to table a new plan in about two weeks. A draft seen by Reuters reveals a gradual phase out of state aid for coal mining between the start of 2011 and the end of 2022. “The immediate closure of the mines that could take place after a sudden end of subsidies would overburden the regional labor markets with a flood of redundant mine workers,” says the draft. “Taking into account jobs in related industries, up to 100,000 jobs may be at stake.” Hardest hit would be Germany's Ruhrgebiet region, northwest Spain and Romania's Jiu Valley. But environmentalists say it would be the sixth such extension of state aid since 1965 and makes a mockery of G20 pledges last year to phase out subsidies for carbon-spewing fossil fuels in the “medium term” in an effort to slow down climate change. G20 leaders meeting in Toronto this weekend will agree to continue working to phase out such subsidies, a draft G20 document shows. About 3.2 billion euros ($4.29 billion) of subsidies will be handed to the coal mining industry in six EU member states this year - Poland, Germany, Spain, Romania, Hungary and Slovakia - according to a draft European Commission impact assessment, also seen by Reuters. Greenpeace alleged that western countries currently disburse about $100 billion a year in subsidies to fossil fuel companies. “Governments passing one hundred billion dollars a year of taxpayers' money to big oil and coal is immoral when compared to their refusal to provide the same amount of money for the poorest countries for climate change adaptation and mitigation,” said Greenpeace director Kumi Naidoo.
