Polluter Pays Principle and Environmentally Harmful Subsidies

The project supported the European Commission in the fitness check of the Polluter Pays Principle (PPP) and in the development of a methodology for the identification and reporting of Environmentally Harmful Subsidies (EHS). The work focused on assessing the implementation of the PPP in terms of effectiveness, efficiency, coherence and EU added value, while supporting the establishment of a harmonised framework for defining and reporting EHS.

The project included the development of methodological approaches and workplans for the definition, monitoring and reporting of EHS, building on previous studies on environmental taxation and fossil fuel subsidies. It also involved analysing challenges related to comparable and verifiable reporting across Member States and preparing analytical papers on key policy issues.

In addition, the technical assistance supported the European Commission through literature reviews, stakeholder consultations, workshops and focus groups involving experts and Member State representatives, as well as the preparation of final methodological reports, assessments and policy recommendations.