Fossil Fuel Bailouts Exacerbate Global Energy Crisis

Fossil fuel shocks are driving inflation worldwide, but governments are responding in ways that only make things worse.

The war on Iran has triggered a global energy crisis, sending prices soaring for fuel, food, and transport. The closure of key shipping lanes like the Strait of Hormuz has shown how easily a single chokepoint can disrupt global supplies.

Despite this, most EU countries have chosen to bail out fossil fuels rather than cut dependence on them. Tax cuts and subsidies are being used to keep prices low for now, but this just keeps consumers hooked on imported oil and gas.

In some cases, governments are prioritizing fossil fuel profits over people's wellbeing. For example, the Spanish government has offered a €5 billion package that includes support for renewable energy commitments, but also massive tax breaks for heavy industry, one of Europe's strongest lock-ins to fossil fuels.