Fossil Fuel Subsidies.

Via on Mar 28, 2013

Source: act.350.org via Garth on Pinterest

From our friends at EcoWatch.com and their partner 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.”

~ 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.”

EcoWatch LogoEcoWatch is a cutting-edge news service promoting the work of more than 1,000 grassroots environmental organizations and activists worldwide, and showcasing the insights of world-renowned environmental leaders. EcoWatch focuses on the issues of water, air, food, energy and biodiversity, and promotes ongoing environmental campaigns including climate change, fracking, mountaintop removal, factory farming, sustainable agriculture and renewable energy. News is provided on a global and local scale. EcoWatch unites the voices of the grassroots environmental movement and mobilize millions of people to engage in democracy in pursuit of a sustainable future.

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Ed: Lynn Hasselberger

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3 Responses to “Fossil Fuel Subsidies.”

  1. Mark Ledbetter says:

    And the direct subsidies are only the small part. The monster in the room is government built infrastructure for cars. There used to be debate about this. From the founding until 1916 (the fateful year), government built roads were anathema. Since then, the car subsidy (the "free" infrastructure) has killed the best mass transportation system in history, then or now (interurbans) and rebuilt the very structures of our physical world for the smooth running of the automobile. America led the way on this. Now cars are subsidized everywhere in the world. Subsidizing cars equals subsidizing oil.

    People blame "corporate greed" and capitalism for this. But the greed is human and capitalism it's not.

    • Mark Ledbetter says:

      Btw, kudos to WWF for recognizing the role of subsidies in warping the market. WWF pointed out the same thing concerning overfishing of the oceans some ten or so years ago. Subsidies to the fishing industry were (and are) huge, making possible a much larger fishing industry than a free market would allow.

  2. Scandalous or criminal? That laws aren't protecting people or the planet but rather industry speaks to our legislators' interests and our democracy's built-in flaw: the law-makers. We the people need to vote for the laws we want, not lawmakers.

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