CAN member WWF today lodged a formal complaint with the European Commission concerning a new regulation passed by the Spanish government to provide state aid to power stations that burn domestically produced coal. The organisation says that the scheme, if approved, would be additional to existing subsidies already given to Spanish coal mines for the same coal.

Earlier this year, the Spanish government adopted a Royal Decree to fix prices and prioritise dispatch at ten Spanish coal-fired power stations using domestic coal[1]. The plan, which would cost an estimated €800M over three years according to the Spanish energy regulator, aims to help clear a backlog of stockpiled coal caused by the combination of lower electricity demand due to the economic downturn and an increase in the share of electricity generated from renewable energy sources. Implementation of the plan has been delayed pending its clearance by the Spanish EU competition commissioner Joaquín Almunia.

‘Faced with a recession, state aids for renewable energy growth and green jobs are the most sustainable option for meeting climate targets and developing a vibrant economy. Yet the Spanish government is going backwards by supporting new coal subsidies,’ said Mar Asunción, Head of Climate Change of WWF Spain.

In addition, Spain is one of a handful of EU states pressing the European Commission to prolong subsidies for coal mining. The current 8-year derogation expires at the end of this year. Current annual aid levels are highest in Germany and Spain, €2bn and €1bn respectively. The Commission could propose a new coal derogation later this month.

‘Any subsidies that artificially boost the use of coal are incomprehensible. But double subsidies are just farcical. The European Commission must act decisively to ensure Spanish coal aid is phased out; Spain’s plans must not become a precedent for other EU member states,’ said Mark Johnston, Senior Policy Adviser at WWF in Brussels.

Spain is already not meeting its greenhouse gas emission targets. According to the European Environment Agency's latest annual inventory, emissions in the country in 2008 were 40 percent, or 116 million tonnes CO2 equivalent, above its Kyoto base year and 22 percent, or 73 million tonnes CO2 equivalent, above its 2012 compliance target.

The press release and related material is available on www.panda.org/eu
[1] The ten power stations in question are Anllares, Compostilla, Elcogás, Escucha, Guardo-2, La Robla-2, Narcea-3, Puntenuevo-3, Teruel, and Soto de Ribera-3.

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