Current:Home > MarketsEthermac Exchange-Fossil Fuel Subsidies Top $450 Billion Annually, Study Says -FundPrime
Ethermac Exchange-Fossil Fuel Subsidies Top $450 Billion Annually, Study Says
SignalHub Quantitative Think Tank Center View
Date:2025-04-11 04:10:58
The Ethermac Exchangegovernments of the world’s 20 largest economies spend more than $450 billion annually subsidizing the fossil fuel industry, a new analysis has concluded, four times more than what they spend on renewable energy.
The report by Oil Change International, a Washington-based advocacy organization, and the Overseas Development Institute, a British research group, calculates the amount of money the G20 nations provide to oil, gas and coal companies through tax breaks, low cost loans and government investments. It comes just weeks before country representatives convene in Paris to forge a climate deal that aims to put the global energy economy on a path to zero emissions, and it underscores the obstacles this effort faces.
“If the G20 leaders want to be credible ahead of the Paris talks, they need to show they’re serious,” said Alex Doukas, a senior campaigner at OCI and one of the authors of the report. “Handing money to fossil fuel companies undermines their credibility.”
Doukas said phasing out subsidies should be a top priority because it hinders the transition to clean energy at the scale needed.
Researchers at Oil Change International tracked three main ways in which governments subsidize fossil fuel companies:
National subsidies: Direct spending by governments to build out fossil fuel infrastructure and tax exemptions for investments in drilling and mining.
State owned companies: Government-owned oil and gas companies that benefit from government involvement.
Public financing: Investments in fossil fuel production through government-backed banks and other financial institutions.
The subsidy data was collected from sources including government budgets and commercial databases. Doukas cautioned that some of the subsidies were not easily quantifiable and the figures in the report are likely underestimates. Still, the report gives a picture of the magnitude of the investments in fossil fuels, he said.
Countries vary in how they subsidize the fossil fuel industry. In China, for instance, a majority of the oil and gas companies are owned by the state and it invested more than $75 billion a year in 2013 and 2014 in fossil fuel production.
The vast majority of subsides to the industry in the U.S., on the other hand, are through tax breaks. The U.S. provided at least $20 billion a year in tax exemptions for fossil fuel companies in 2013 and 2014.
Scientists have warned that if the worst effects of climate change are to be avoided, global temperature rise must be kept under 2 degrees Celsius. In order to do that, researchers have estimated that we must keep at least three quarters of the global fossil fuel reserves in the ground.
“Exploration subsidies [in the U.S.] are particularly pernicious,” said Doukas. “At the very moment when we know we have to keep three-fourth of the fossil fuels in the ground, we’re using public money to incentivize their development.”
The Oil Change International’s analysis follows a report by the International Energy Agency this week that concluded that the world’s transition to a low-carbon energy is too slow. Low oil prices and an increasing reliance on coal in developing countries has impeded the growth in renewables, the agency found.
The IEA has also estimated that countries spent $121 billion in 2013 on renewable energy. That figure is about a quarter of the amount spent on fossil fuels in the G20 countries alone, according to the OCI-ODI analysis.
“Fossil fuel subsidies are public enemy number one for the growth of renewable energy,” Fatih Birol, head of the IEA, told the Guardian. “I don’t understand some countries—they have renewable energy programs and at the same time they have subsidies for fossil fuels. This is, in my view, myopic.”
veryGood! (96324)
Related
- 'Vanderpump Rules' star DJ James Kennedy arrested on domestic violence charges
- Lisa Vanderpump Has the Perfect Response to Raquel Leviss' Podcast Shade
- Republican state senator to run for open congressional seat representing northeastern Wisconsin
- Elle King returns to performing nearly 2 months after controversial Dolly Parton tribute
- Can Bill Belichick turn North Carolina into a winner? At 72, he's chasing one last high
- Pennsylvania court rules electronic voting data is not subject to release under public records law
- Nikki Haley wins Washington, D.C., Republican primary, her first 2024 nominating contest win
- Sam Asghari opens up about Britney Spears divorce, says he'll never 'talk badly' about her
- Head of the Federal Aviation Administration to resign, allowing Trump to pick his successor
- La comunidad hispana reacciona al debate sobre inmigración tras el asesinato de una estudiante
Ranking
- Alex Murdaugh’s murder appeal cites biased clerk and prejudicial evidence
- In 1807, a ship was seized by the British navy, the crew jailed and the cargo taken. Archivists just opened the packages.
- 2024 MLS All-Star Game set for July vs. Liga MX. Tickets on sale soon. Here's where to buy
- New Mexico governor signs bill that bans some guns at polls and extends waiting period to 7 days
- Newly elected West Virginia lawmaker arrested and accused of making terroristic threats
- Caitlin Clark passes Pistol Pete Maravich's record to become all-time NCAA Division I scoring leader
- Full transcript of Face the Nation, March 3, 2024
- What is Super Tuesday and how does tomorrow's voting work?
Recommendation
Pressure on a veteran and senator shows what’s next for those who oppose Trump
Sleepy bears > shining moments: March Napness brings bracketology to tired sanctuary bears
New York City nearly resolves delays in benefits to thousands of low income residents, mayor says
Photos show humpback whale washed up on Virginia Beach: Officials to examine cause of death
FACT FOCUS: Inspector general’s Jan. 6 report misrepresented as proof of FBI setup
Denver Broncos inform QB Russell Wilson they’ll release him when new league year begins
Survivors say opportunities were missed that could have prevented Maine’s worst-ever mass shooting
Mental health concerns prompt lawsuit to end indefinite solitary confinement in Pennsylvania