Fossil Fuel Subsidies Are Killing Global Economic Growth
Ending fossil fuel subsidies would save governments nearly $1 trillion while also improving environment and economic conditions worldwide, according to a report from the Natural Resources Defense Council (NRDC) and other environmental and social advocacy groups.
At a press conference at the Rio+20 Earth Summit in Rio de Janeiro, NRDC International Climate Policy Director Jake Schmidt made the following statement:
“The only beneficiaries of fossil fuel subsidies are oil, gas and coal companies that are raking in record profits at the expense of the rest of us. Instead of subsidizing well-established corporations that destroy our planet, governments ought to be doing more to help support and develop more clean, renewable energy that can actually help our planet, reduce our energy consumption and revive our economies.”
Based on government data from around the world, the new report finds that ending fossil fuel subsidies would:
- Save governments and taxpayers $775 billion each year
- Reduce global carbon dioxide emissions by 6 percent by 2020
- Reduce global energy demand by 5 percent by 2020
- Not hurt the poor (if the right policies are adopted) since the vast majority of subsidies mainly benefit only the richest segments of the population
- To read the report in its entirety, click here.
- For a fact sheet on fossil fuel subsidies, click here.
And for more, see:
- NRDC Trustee Robert Redford’s blog
- NRDC President Frances Beinecke’s blog
- NRDC International Program Attorney Anthony Swift’s blog