Subsidies could slowly be phased out

In Short

Subsidies have nurtured a green market. As this green market expands, subsidies are slowly losing political support and phased out.

A Few Details

Subsidies did help a burgeoning green market to find its first customers, before scaling up towards mass production with cheaper prices for solar panels, wind turbines and EV batteries, which will be the building blocks of a green transition.

The hope is that prices of these green products keep going down as production scales up, and finally outprice fossil fuels, even without subsidies.

Subsidies could also soon create a hole in the budget of the Treasury as the green market grows. Is it now time for “carbon pricing” to relay the phasing out of subsidies?

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