Global subsidies for fossil fuels have returned to levels not seen since before the financial crisis in 2008, estimated at $ 523 billion to $ 1.9 trillion, according to a new report.
Unfortunately, however, government resources are actually flowing the other way: according to a report from the U.S. - based National Resources Defense Council, since 2009,
global subsidies for fossil fuels have almost tripled to an estimated US$ 775 billion this year.
Not exact matches
Eliminating
fossil fuel subsidies would slash
global carbon emission by 20 percent and raise government revenue by 2.9 trillion, well over the funds needed
for intelligent policy and action on climate adaptation.»
A study published today, by a group led by the International Institute
for Applied Systems Analysis (IIASA), indicates that eliminating
fossil fuel subsidies could curb
global greenhouse gas emissions by as much as 5 % through 2030 while saving hundreds of billions of dollars in public money.
An unprecedented coalition of close to 40 governments, hundreds of businesses and influential international organisations has called today
for accelerated action to phase out
fossil fuel subsidies, a move that would help bridge the gap to keep
global temperature rise below 2 °C.
Setting aside the fact that in many cases clean energy competes on its own merits —
for instance in the case of well ‐ situated wind farms and Brazilian sugarcane ethanol — this analysis shows that the
global direct
subsidy for fossil fuels is around ten times the
subsidy for renewables.
The value of
global fossil -
fuel consumption
subsidies in 2016 is estimated at around USD 260 billion, lower than the estimate
for 2015, which was close to USD 310 billion.
Since 2009, the IEA has actively contributed to all energy work streams of the G20 — a group that accounts
for 85 % of the
global economy and 75 % of
global energy demand — covering topics ranging from energy security and market transparency, to energy efficiency and the phase out of
fossil fuel subsidies.
Such policies would encourage economic growth as the foundation
for a cleaner environment, responsible development and use of
fossil fuels until superior energy sources are found, and repeal of many of the regulations,
subsidies, and taxes passed at the height of the man - made
global warming scare.
Regardless of whether the IMF report gets to exactly the right number, the report provides a very credible starting point to argue over the right value to place on
fossil fuel subsidies, and will be a baseline to begin rethinking the right pace
for our
global transition to clean energy.
«Campaigners call
for an end to
fossil fuel finance and
subsidies to avoid dangerous
global warming at a meeting to mark two years since the signing of the landmark agreement.»
Meanwhile, natural gas, at 20 % of
global fossil fuel reserves, offers the largest - scale, economic - without -
subsidies substitute
for either coal or oil.
Major
global insurance companies are urging G20 leaders to commit to a specific timeline
for rapidly phasing out
fossil fuel subsidies — something they've repeatedly failed to do over the years despite numerous promises to end support
for the industry.
According to the IEA,
global fossil fuel consumption
subsidies are over twice as large as
subsidies for renewable energy in 2015, which amounted to $ 150 billion globally — $ 120 billion
for non-hydro renewables
for power generation and about $ 30 billion
for renewables in other sectors, primarily biofuels.
Kim said action was needed to create a carbon market, eliminate
fossil -
fuel subsidies and «green» the world's 100 megacities, which are responsible
for 60 to 70 % of
global emissions.
As a means of comparison, in 2011 alone the International Energy Agency estimated that
global fossil fuel direct
subsidies were worth $ 523 billion, compared to $ 88 billion
for renewables.
Dr Birol also held meetings at the Ministry of Foreign Affairs and Trade, the Ministry of Environment and with New Zealand's Climate Change Ambassador, where the IEA and New Zealand agreed on the need to support
global policy advice and quantitative analysis
for the phase out of
fossil fuel subsidies and the energy transition, both through bilateral collaboration and multilateral fora, such as APEC, the WTO and the G20.
Analysis in the new WEO - 2017 showed that
for the first time the largest share of
global subsidies that benefit
fossil fuel consumption went to keep electricity prices artificially low (41 % of the
global total), ahead of oil (40 %) and natural gas.
To recap, Rio has the potential to engage the world's youth to help push
for meaningful progress on phasing out
fossil fuel subsidies, delivering universal clean energy access, and promoting women's rights and slowing
global population.
Furthermore, an estimated 11 - 18 % of
global fossil fuel subsidies don't go towards directly lowering the prices that consumers pay, instead occurring in the form of tax breaks
for fossil fuel companies and other forms of indirect support
for industry.
You have to pinch yourself when the government announces another new
subsidy for the
fossil fuel industry, not only because they so recently said that renewable energy should stand on its own two feet, but also because they're announcing this just days before the latest climate conference in Paris — at which world leaders will gather to try and hammer out a
global deal to reduce emissions.
But they're in the same ball park, and the Bloomberg complaint is that «This analysis shows that the
global direct
subsidy for fossil fuels is around ten times the
subsidy for renewables.»
«This analysis shows that the
global direct
subsidy for fossil fuels is around ten times the
subsidy for renewables.»