Governments support energy production and consumption in order to meet social, economic and environmental objectives, and they have been doing so for decades. In these times of economic crisis, public budgets and household incomes are under pressure. At the same time, countries need to kick start their economies by creating new employment opportunities in emerging industries such as the renewables sector. This report examines the support allocated to energy production and consumption in Europe and its impact on innovation in renewable energy. CE Delft was lead author of the report, which has been published by the EEA in its Technical Report series.