Quantcast
Environmental News for a Healthier Planet and Life

Government Subsidizes Fossil Fuel Industry With $20+ Billion in Taxpayer Money Each Year

Energy
Government Subsidizes Fossil Fuel Industry With $20+ Billion in Taxpayer Money Each Year

Oil Change International released a comprehensive report today on fossil fuel exploration and production subsidies in the U.S.—Cashing in on All of the Above: U.S. Fossil Fuel Production Subsidies Under Obama—which demonstrates that at a time when we need urgent action on climate change, the U.S. government is channeling huge and growing amounts of money to increasing discovery and production of oil, gas and coal. These federal and state subsidies totaled $21.6 billion in 2013.

“The 'All of the Above' energy strategy is not only climate denial—it’s climate denial that is funded with more than $20 billion in taxpayer support each year.” Photo credit: Oil Change International

Subsidies that promote fossil fuel exploration are particularly harmful and hypocritical. The world’s preeminent scientific institutions working on climate and energy have determined that the majority of the world’s existing fossil fuel reserves need to be left in the ground in order to avoid catastrophic climate impacts. In 2012, the International Energy Agency (IEA) warned that “no more than one-third of proven reserves of fossil fuels can be consumed prior to 2050 if the world is to achieve the two degree Celsius goal.” The Intergovernmental Panel on Climate Change (IPCC) reached a similar conclusion in its 2013 climate assessment.

 

“The 'All of the Above' energy strategy is not only climate denial—it’s climate denial that is funded with more than $20 billion in taxpayer support each year.” said Steve Kretzmann, executive director of Oil Change International. “Until our representatives in Washington and around the country find the courage necessary to put people’s interests ahead of rich polluters, this theft of our tax dollars is likely to continue. The next step for saving the climate should be clear: stop funding fossils.”

Fossil fuel exploration subsidies are in direct conflict with these calls to restrict fossil fuel production and use. Rather than finding ways to curtail fossil fuel production in line with the demands of climate science, the U.S. federal government, under President Obama’s “All of the Above” energy strategy, is currently channeling more than $5 billion each year in exploration subsidies to actually expand proven reserves, leading to the discovery of fossil fuels that we know we should never burn.

Shakuntala Makhijani, the report’s author, added, “The science is clear that at least two-thirds of proven fossil fuel reserves need to stay in the ground to avoid catastrophic climate impacts—it is time for the U.S. government to show leadership and immediately end the massive subsidies that encourage their production.”

 

A monarch butterfly is perched next to an adult caterpillar on a milkweed plant, the only plant the monarch will lay eggs on and the caterpillar will eat. Cathy Keifer / Getty Images

By Tara Lohan

Fall used to be the time when millions of monarch butterflies in North America would journey upwards of 2,000 miles to warmer winter habitat.

Read More Show Less

EcoWatch Daily Newsletter

A protester demonstrates against the Dakota Access Pipeline on March 10, 2017 in Washington, DC. Justin Sullivan / Getty Images

A federal appeals court has struck another blow against the contested Dakota Access Pipeline.

Read More Show Less

Trending

24 Hours of Reality: "Earthrise" by Amanda Gorman / YouTube

By Bud Ward

Poet Amanda Gorman got well-deserved rave reviews for her dramatic reading of her six-minute "The Hill We Climb" poem January 20 before a global TV and online inauguration day audience.

Read More Show Less
The SpaceX Falcon Heavy launches on its maiden test flight from the Kennedy Space Center in Florida on February 6, 2018. Jim Watson / AFP / Getty Images

Three men are paying $55 million each to travel to space, the AP reported.

Read More Show Less
#SaveSalla is a campaign launched by a Finnish community in partnership with the youth climate movement Fridays for Future. www.savesalla.org

By Jessica Corbett

With temperatures across the globe — and particularly in the Arctic — rising due to lackluster efforts to address the human-caused climate crisis, one of the coldest towns on Earth is throwing its hat in the ring to host the 2032 Summer Olympics.

Read More Show Less