Time to change the game : Fossil fuel subsidies and climate change publication
Date published: 2013-11-18T00:00:00
Global fuel subsidies top healf a trillion dollars. This is a new Overseas Development Institute publication argues that it is time to change the game on fossil fuel subsidies.
What is happening? Many of the world’s richest countries continue to pour money into fossil fuel subsidies, with average spending running at $112 per adult. In developing countries the majority of benefits from fossil fuel subsidies go to the richest 20% of households.
How much is being invested? This is an expensive business. Fossil fuel subsidies cost over half a trillion dollars globally in 2011, and up to $90 billion in the OECD alone.
What are the negative effects? The negative effects are profound. Fossil fuel subsidies are creating perverse incentives - where investment in carbon-intensive energy is favoured. This presents a major obstacle to green investment, and seriously undermines attempts to put a price on carbon.
In addition, domestic and international support for fossil fuels dwarfs spending on health and education in a number of countries, and outstrips climate finance and aid.