Quantcast

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

Coral restoration in Guam. U.S. Pacific Fleet / CC BY-NC 2.0

By Erica Cirino

Visit a coral reef off the coast of Miami or the Maldives and you may see fields of bleached white instead of a burst of colors.

Read More
Cracker Lake, Glacier National Park, Montana. Jacob W. Frank / NPS / Flickr

By Jason Bittel

High up in the mountains of Montana's Glacier National Park, there are two species of insect that only a fly fishermen or entomologist would probably recognize. Known as stoneflies, these aquatic bugs are similar to dragonflies and mayflies in that they spend part of their lives underwater before emerging onto the land, where they transform into winged adults less than a half inch long. However, unlike those other species, stoneflies do their thing only where cold, clean waters flow.

Read More
Sponsored
Augusta National / Getty Images

By Bob Curley

  • The new chicken sandwiches at McDonald's, Popeyes, and Chick-fil-A all contain the MSG flavor enhancement chemical.
  • Experts say MSG can enhance the so-called umami flavor of a food.
  • The ingredient is found in everything from Chinese food and pizza to prepackaged sandwiches and table sauces.

McDonald's wants to get in on the chicken sandwich war currently being waged between Popeyes and Chick-fil-A.

Read More
Protesters march during a "Friday for future" youth demonstration in a street of Davos on Jan. 24 on the sideline of the World Economic Forum annual meeting. FABRICE COFFRINI / AFP / Getty Images

By Andrea Germanos

Youth climate activists marched through the streets of Davos, Switzerland Friday as the World Economic Forum wrapped up in a Fridays for Future demonstration underscoring their demand that the global elite act swiftly to tackle the climate emergency.

Read More
chuchart duangdaw / Moment / Getty Images

By Tim Radford

The year is less than four weeks old, but scientists already know that carbon dioxide emissions will continue to head upwards — as they have every year since measurements began leading to a continuation of the Earth's rising heat.

Read More