Brussels should reallocate fossil fuel subsidies to small, innovative green projects

The EU has long committed to leading the global green transition, but that leadership has to start at home.

In Tuscany, a group of workers has a bold plan to transform their closed auto-parts factory into a thriving hub of green innovation. An abandoned factory will be transformed into a symbol of sustainable industry by producing solar panels and cargo bikes. Creating green jobs and cutting carbon emissions are two of the Green Deal’s goals. On paper, everything is looking good.

However, the project is still awaiting a final round of funding worth €5 million. Though this is a small amount in the grand scheme of European funding, it could make all the difference. In order to support grassroots green initiatives like this one, the EU must reallocate resources from outdated fossil fuel subsidies and large-scale industrial projects. As a result of this approach, the EU could create sustainable jobs, stimulate local innovation, and show the Green Deal to be more than just words.

Subsidies for fossil fuels are worth around €50 billion per year in the EU. By allocating even a miniscule portion of this spending to an innovative green enterprise like this, Brussels could transform Tuscany’s economy. Nearly half the required funding has already been secured by the workers themselves, prototypes have already been built, and their first orders have even been lined up. It is possible for them to make this work because they have the expertise and community support.

All they lack is political and financial backing. Redirecting funds from large, less targeted projects to smaller, localised initiatives could deliver faster results and foster public trust in the EU’s climate commitments. For example, the European Innovation Fund could earmark a percentage of its budget specifically for grassroots initiatives which blend environmental and economic goals.

This isn’t just about money; it’s about values and priorities. The EU has long committed to leading the global green transition, but that leadership has to start at home. By investing in projects like this, the EU would save jobs in Tuscany and create a replicable model for green industrial transformation across Europe. It could inspire other regions to take similar steps, knowing support exists for bold, worker-led solutions.

Meanwhile, fossil fuel subsidies and massive industrial grants often fail to meet the EU’s climate goals or address the needs of struggling communities. By cutting these subsidies and reallocating funds to projects that make an immediate impact, the EU can create a more equitable and sustainable economy. Programs like the Just Transition Fund, which aims to help regions transition from fossil fuels, should also be streamlined to better support local initiatives with clear environmental and social benefits.

The workers in Tuscany have shown extraordinary resilience and ingenuity. They’ve built a plan which saves jobs and contributes to Europe’s fight against climate change. All they need now is for policymakers to step up and recognise the value of their vision. The EU has the tools and resources to help this project succeed. What’s missing is the political will to prioritise grassroots solutions over status quo subsidies.

By acting decisively, the EU can turn this factory into a beacon of what’s possible when sustainability, innovation, and community come together. It’s time to stop talking about the green transition and start funding it where it matters most—in the hands of people ready to make it happen.

Lika Kobeshavidze
Lika Kobeshavidze
Lika Kobeshavidze is a Georgian writer and a policy analyst. She is currently based in Lund, Sweden, pursuing an advanced degree in European studies.