Quantcast
Environmental News for a Healthier Planet and Life

Governments Spend $1.4 Billion Per Day to Destabilize Climate

Climate

Lester Brown

We distort reality when we omit the health and environmental costs associated with burning fossil fuels from their prices. When governments actually subsidize their use, they take the distortion even further. Worldwide, direct fossil fuel subsidies added up to roughly $500 billion in 2010. Of this, supports on the production side totaled some $100 billion. Supports for consumption exceeded $400 billion, with $193 billion for oil, $91 billion for natural gas, $3 billion for coal and $122 billion spent subsidizing the use of fossil fuel-generated electricity. All together, governments are shelling out nearly $1.4 billion per day to further destabilize the earth’s climate.

The government of Iran spent the most on promoting fossil fuel consumption in 2010, doling out $81 billion in subsidies. This equaled more than 20 percent of the country’s gross domestic product. Saudi Arabia was a distant second at $44 billion. Rounding out the top five were Russia ($39 billion), India ($22 billion) and China ($21 billion).

Kuwait’s fossil fuel subsidies were highest on a per capita basis, with $2,800 spent per person. The United Arab Emirates and Qatar followed, each spending close to $2,500 per person.

Carbon emissions could be cut in scores of countries by simply eliminating fossil fuel subsidies. Some countries are already doing this. Belgium, France and Japan have phased out all subsidies for coal, for example. As oil prices have climbed, a number of countries that held fuel prices well below world market prices have greatly reduced or eliminated their motor fuel subsidies because of the heavy fiscal cost. Among those reducing subsidies are China and Indonesia. Even Iran, which was pricing gasoline at one fifth its market price, dramatically reduced its gasoline subsidies in December 2010 as part of broader energy subsidy reforms.

In contrast to the $500 billion in fossil fuel supports in 2010, renewable energy received just $66 billion in subsidies—two thirds for electricity generation from wind, biomass and other sources, and one third for biofuels. Not only do fossil fuel subsidies dwarf those for renewables today, but a long legacy of governments propping up oil, coal and natural gas has resulted in a very uneven energy playing field.

A world facing economically disruptive climate change can no longer justify subsidies to expand the burning of coal and oil. The International Energy Agency projects that a phaseout of oil consumption subsidies by 2020 would cut oil use by 3.7 million barrels per day in that year. Eliminating all fossil fuel consumption subsidies by 2020 would cut global carbon emissions by nearly 5 percent while reducing government debt. Shifting subsidies to the development of climate-benign energy sources such as wind, solar and geothermal power will help stabilize the earth’s climate.

--------

This data highlight is adapted from World on the Edge by Lester R. Brown. For more data and discussion, see the full book at www.earth-policy.org.

EcoWatch Daily Newsletter

Pexels

By Zak Smith

It is pretty amazing that in this moment when the COVID-19 outbreak has much of the country holed up in their homes binging Netflix, the most watched show in America over the last few weeks has been focused on wildlife trade — which scientists believe is the source of the COVID-19 pandemic. Make no mistake: Tiger King: Murder, Mayhem and Madness is about wildlife trade and other aspects of wildlife exploitation, just as surely as the appearance of Ebola, SARS, MERS, avian flu and probably COVID-19 in humans is a result of wildlife exploitation. As a conservationist, this is one of the things I've been thinking about while watching Tiger King. Here are five more:

Read More Show Less
Pexels

By Hector Chapa

With the coronavirus pandemic quickly spreading, U.S. health officials have changed their advice on face masks and now recommend people wear cloth masks in public areas where social distancing can be difficult, such as grocery stores.

But can these masks be effective?

Read More Show Less
Sponsored
Jörg Carstensen / picture alliance via Getty Images

By Carey Gillam

Bayer AG is reneging on negotiated settlements with several U.S. law firms representing thousands of plaintiffs who claim exposure to Monsanto's Roundup herbicides caused them to develop non-Hodgkin lymphoma, sources involved in the litigation said on Friday.

Read More Show Less
Tom Werner / DigitalVision / Getty Images

By Jillian Kubala, MS, RD

With many schools now closed due to the current COVID-19 outbreak, you may be looking for activities to keep your children active, engaged, and entertained.

Although numerous activities can keep kids busy, cooking is one of the best choices, as it's both fun and educational.

Read More Show Less
In Germany's Hunsrück village of Schorbach, numerous photovoltaic systems are installed on house roofs, on Sept. 19, 2019. Thomas Frey / Picture Alliance via Getty Images

Germany's target for renewable energy sources to deliver 65% of its consumed electricity by 2030 seemed on track Wednesday, with 52% of electricity coming from renewables in 2020's first quarter. Renewable energy advocates, however, warned the trend is imperiled by slowdowns in building new wind and solar plants.

Read More Show Less