Quantcast
Environmental News for a Healthier Planet and Life

Help Support EcoWatch

Fossil Fuel Subsidies: A Global Scandal

Climate

World Wildlife Fund

The continued maintenance of fossil fuel subsidies is a global scandal and governments should work to transform these subsidies into financing for energy efficiency and renewable energy, says World Wildlife Fund (WWF), responding to a report released yesterday by the International Monetary Fund (IMF).

The IMF report, Energy Subsidy Reform: Lessons and Implications, shines a much needed light on the dark side of fossil fuel subsidies.

The IMF assessment shows that global fossil fuel subsidies—including carbon pollution impacts from fossil fuels—account for almost nine percent of all annual country budgets, amounting to a staggering US$1.9 trillion, much higher than previously estimated. And importantly, says WWF Global Climate & Energy Initiative leader Samantha Smith, the report confirms that the poorest 20 percent of developing countries only marginally benefit from energy subsidies.

“Removing these subsidies would reduce carbon pollution by 13 percent. This would be a major step toward reducing the world’s carbon footprint. Maintenance of these subsidies is a global scandal, a crime against the environment and an active instrument against clean energy and technological innovation," said Smith. "We strongly support transforming fossil fuel subsidies into an effective scheme for financing energy efficiency and renewables and making sure that the poor in developing countries benefit appropriately and receive clean, affordable and reliable energy."

The IMF findings show that almost half of fossil fuel subsidies occur in OECD (Organisation for Economic Co-operation and Development) nations. The U.S., with about US$500 billion annually, accounts for more than one quarter of all global fossil fuel subsidies, followed by China with almost US$300 billion and Russia (US$115 billion).

WWF Global Energy Policy Director Stephan Singer says industrialized countries are responsible for the lion’s share of fossil fuel subsidies and should act now to stop them.

“If they were to abolish those subsidies and reform towards renewables and energy efficiency investments, it would more than triple present global investment into renewables,” said Singer. “And that is what is needed for a world powered by 100 percent sustainable renewables.”

Visit EcoWatch’s CLIMATE CHANGE and RENEWABLES pages for more related news on this topic.

——–

Click here to tell Congress to Expedite Renewable Energy.

 

EcoWatch Daily Newsletter

During a protest action on May 30 in North Rhine-Westphalia, Datteln in front of the site of the Datteln 4 coal-fired power plant, Greenpeace activists projected the lettering: "Climate crisis - Made in Germany" onto the cooling tower. Guido Kirchner / picture alliance / Getty Images

Around 500 climate activists on Saturday gathered outside the new Datteln 4 coal power plant in Germany's Ruhr region, to protest against its opening.

Read More Show Less
Dr. Mark Brunswick (2R), Vice President of Regulatory Affairs and Quality, walks through the lab at Sorrento Therapeutics in San Diego, California on May 22. ARIANA DREHSLER / AFP / Getty Images

By Julia Ries

Around the world, there have been several cases of people recovering from COVID-19 only to later test positive again and appear to have another infection.

Read More Show Less

By Samantha Hepburn

In the expansion of its iron ore mine in Western Pilbara, Rio Tinto blasted the Juukan Gorge 1 and 2 — Aboriginal rock shelters dating back 46,000 years. These sites had deep historical and cultural significance.

Read More Show Less
Meadow Lake wind farm in Indiana. Anthony / CC BY-ND 2.0

By Tara Lohan

The first official tallies are in: Coronavirus-related shutdowns helped slash daily global emissions of carbon dioxide by 14 percent in April. But the drop won't last, and experts estimate that annual emissions of the greenhouse gas are likely to fall only about 7 percent this year.

Read More Show Less
Andrey Nikitin / iStock / Getty Images Plus

By Adrienne Santos-Longhurst

Plants are awesome. They brighten up your space and give you a living thing you can talk to when there are no humans in sight.

Turns out, having enough of the right plants can also add moisture (aka humidify) indoor air, which can have a ton of health benefits.

Read More Show Less
A bald eagle chick inside a nest in Rutland, Massachusetts. Massachusetts Division of Fisheries and Wildlife
A bald eagle nest with eggs has been discovered in Cape Cod for the first time in 115 years, according to the Massachusetts Division of Fisheries and Wildlife (Mass Wildlife), as Newsweek reported.
Read More Show Less

Trending

The office of Rover.com sits empty with employees working from home due to the coronavirus pandemic on March 12 in Seattle, Washington. John Moore / Getty Images

The office may never look the same again. And the investment it will take to protect employees may force many companies to go completely remote. That's after the Centers for Disease Control and Prevention (CDC) issued new recommendations for how workers can return to the office safely.

Read More Show Less