Removing fuel subsidies to fisheries could speed up the energy transition

The Baltic Sea Centre comments on the EU Commission Call for Evidence for the initiative for the energy transition of the EU’s fisheries and aquaculture sector: A major hurdle for an energy transition for fisheries is the fuel subsidy, in the form of exemption from tax or other full carbon pricing. Another hurdle is the depleted fish stocks. Robust fish stocks make for more efficient fuel use and aid the energy transition.

In the wake of Russia's invasion of Ukraine, with the rising fuel costs that followed, the EU is seeking to speed up the transition towards the Green Deal. An initiative has been launched to identify the barriers that could slow down the shift away from fossil fuels in the fisheries and aquaculture sector.

The Baltic Sea Centre writes, in a reply to the EU Call for evidence, that fuel tax exemptions are a major obstacle to the transition, as they reduce incentives to invest in more efficient engines or use less fuel-intensive practices. Instead, fuel subsidies worsen overcapacity inEuropean fisheries, resulting in depleted stocks and degraded marine environments.

As renewable fuels also have an environmental impact, energy efficiency is a key part of the transition. Energy consumption needs to be reduced.

Ecosystem-based management for the  of fisheries

Several of the important fish stocks in the Baltic Sea are distressed or depleted. More time and effort is required to fish if stocks are depleted. With larger fish stocks in the sea, less energy is required to catch a given amount of fish.

Therefore, an efficient energy transition requires that the EU achieves the objective of progressively restoring and maintaining populations of fish stocks to levels required to maintain biodiversity (including genetic diversity within the target stock), habitat integrity and foodwebs.

Reducing fishing pressure to levels consistent with the environmental objectives of the Common Fisheries Policy would further increase energy efficiency.

 

Summary

  • Fuel subsidies in the form of tax exemptions or reductions are a barrier to implementation of better energy technologies and practices.
  • Important synergies between removal of fuel subsidies, the energy transition and a healthier marine environment should be exploited.
  • More robust fish stocks make for more efficient use of energy in fishing and thereby contribute to the energy transition.

Read the Stockholm University Baltic Sea Centre's reply to the European Commission’s Call for Evidence on the energy transition of EU fisheries and aquaculture sector