Since 2013, the European Union has spent nearly €440 million on fossil gas infrastructure projects that have failed (‘stranded assets’) or are at risk of failure, according to an analysis by international NGO Global Witness published on Monday 22 February.
According to this analysis, out of the €5 billion in grants and subsidised loans provided by the EU to 41 gas projects, €439 million has been given to seven gas projects that never got off the ground or were built, but “are unlikely to transport gas”.
“This is a dismal record: nearly 10 percent of all EU gas subsidies has been wasted”, writes Global Witness.
These projects were eligible for EU financial support as they are included in the EU’s fourth list of projects of common interest (PCI). Approved on 12 February 2020 by the European Parliament despite the opposition of MEPs mainly from left-wing groups (see EUROPE 12424/6), this list has been the subject of much criticism, in particular for the lack of prior assessment of the sustainability of the gas projects included in it (see EUROPE 12605/13).
Recalling the conclusions of Artelys’ analyses of the EU’s gas needs (see EUROPE 12607/16, 12407/21), the NGO stresses that “any further spending on unnecessary gas projects would be a waste of taxpayer money”.
See Global Witness’ analysis: http://bit.ly/2ZEx6L3 (Original version in French by Damien Genicot)