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Fossil Fuel Subsidies
This approach compares average end-user prices paid by consumers with reference prices that correspond to the full cost of supply. The price gap is the amount by which an end-use price is short of the reference price. Its existence indicates the presence of a subsidy. In a given economy, the basic calculation of subsidies for a product is:Subsidy = (Reference price - End-user price) × Units consumedThese calculations require substantial data. End-user price and consumption data are drawn from IEA data and, where necessary, from government sources and other reports. The estimates are also sensitive to reference…
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Global Energy and Climate Model Macro drivers
…otherwise specified, these are kept constant across all scenarios as a means of providing a starting point for the analysis and facilitating the interpretation of the results. The projections are based on the average retail prices of each fuel used in final uses, power generation and other transformation sectors. These end-use prices are derived from projected international prices of fossil fuels and subsidy/tax levels and vary by country. Population We use the medium variant of the United Nations projections as the basis for our population growth. In this variant, global population growth slows over the coming decades, but…
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Policy options to accelerate distributed solar PV in Ukraine Policy options and implications
…government policies and incentives have been the main driver for distributed PV deployment. These instruments can be differentiated between 1) policies targeting investment costs and 2) policies focusing on consumption and the sale of electricity.Policies targeting investment costs usually take the form of direct financial incentives that aim to reduce initial investment costs and make distributed PV systems more affordable for consumers. They include:Grants and rebates: a fixed subsidy, usually with a one-time payment.Tax credits: amounts taxpayers can subtract from taxes, usually based on a percentage of total solar PV system investments.Accelerated depreciation: Solar PV…
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Global EV Outlook 2025 Executive summary
…almost half of all car sales in 2024; the over 11 million electric cars sold in China last year were more than global sales just 2 years earlier. As a result of continued strong growth, 1 in 10 cars on Chinese roads is now electric. Europe saw sales stagnate in 2024 as subsidy schemes and other supportive policies waned, but the sales share of electric cars remained around 20% as stronger sales in some countries compensated for lower sales in others. In the United States, electric car sales grew by about 10% year-on-year, reaching more than 1 in 10 cars…
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Ramping up Heat Pumps in Moldova: A Roadmap Financing the transition
…upfront payment, this presents a challenge.One solution is to provide point-of-sale rebates, where the tax credit is deducted immediately from the sales price. The United States Inflation Reduction Act offers this. Another is to provide zero-interest bridge loans – from a development bank or local municipality, for example – to cover the anticipated tax credit.Energy companies can also provide subsidies through energy efficiency obligation (EEO) programmes. Under these schemes, energy companies are legally required to deliver a specified amount of energy savings to their customers. This can be achieved through heat pumps, since they help save energy. In…
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Subsidy for FCEV and HRS (2025)
KRW 721.8 billion (USD 493 million) allocated by the Ministry of Environment to expand the supply and use of hydrogen-powered vehicles in 2025. The budget will be used for purchase subsidies aiming to stimulate the uptake of 2000 hydrogen buses, 11000 passenger cars, 10 freight vehicles and 10 cleaning vehicles KRW 196.3 billion (USD 134 million) were also allocated for the construction of 64 HRS in 2025
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Subsidy for low emission vehicles
Purchase subsidies are provided for electric, hydrogen and gas vans and commercial trucks. The subsidy value ranges from EUR 2 000 to EUR 6 000 for vans and from EUR 6 000 to EUR 50 000 for trucks, depending on vehicle size. Funding allocated to private cars was already exhausted in 2022. For vans and trucks, the scheme has been on hold since the end of 2024, as all funding decisions have been made and no new funding is currently available, although the act remains in force.
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Subsidy for industrial development of e-vehicles and for their purchases
…total value PLN 150 million. Green car: assisting in purchasing electric vehicles for private use, purchase price of the vehicle must not exceed PLN 125,000, expected to finance the purchase of two thousand electric vehicles (total budget: PLN 37.5 million) eVan programme: PLN 70 million to be directed towards business owners who have decided to purchase electric vehicles; expected to optimise purchase targets towards 1000 eVan. The subsidy cannot exceed 30% of the value and PLN 70 000. Hummingbird: PLN 40 million allocated for the programme to support the purchase/leasing of 1000 electric taxes (M1 category)
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Subsidy scheme for low-emissions hydrogen production (OWE)
The government awarded over €700 million in subsidies to 11 projects supporting approximately 602 MW of electrolysis capacity for low-emissions hydrogen production. The scheme is part of a broader €998 million budget under the OWE programme, aimed at scaling domestic hydrogen supply and supporting its use in industry, refineries and transport. The programme contributes to the Netherlands’ hydrogen strategy and industrial decarbonisation.
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Subsidy for heat producers
The Czech Ministry of Industry and Trade announced to provide in 2023 subsidies to heat producers to cover higher costs of heat generation. The aim is to shield customers from high prices since the subsidy beneficiary will be obliged to decrease heat prices accordingly.