NEWS ALERT: Fossil Fuel Subsidies Bombshell

Let’s Talk Subsidies….

Little known fact #1: total subsidies for global fossil fuels have been estimated at between $775 billion in 2010 and more than $1 trillion in 2012,

Little known fact #2: total subsidies for global renewable energy stood at just $66 billion in 2010 and $88 billion in 2012.

Little known fact #3: the fossil fuel energy sector has been heavily subsidized since 1918.

This is according to new research conducted by the IMF and International Energy Agency and is clearly contrary to the public perception that only the renewable energy industry receives subsidies.

In fact the IMF went as far as stating that “Government subsidies of gasoline, electricity and other energy sources amount to about $1.9 trillion a year and should be ended or offset with taxes used to battle climate change and pay for social programs”. “It is time for subsidies to end and carbon taxation to be put in place,” said IMF First Deputy Managing Director David Lipton.

The biggest offender was by far the United States, with $502 billion. China were second with $279 billion, and Russia were third with $116 billion.

The most significant finding carried out in the study is that most of the problem is the failure to correctly place a price on carbon pollution. Global warming is the ultimate example of a market failure in which one market enjoys the benefits while the other pays the costs.

These are true and real costs to society that are ultimately picked up by taxpayers. The continual and perpetual burning of fossil fuels have alarming direct and indirect consequences, and yet bizarrely thanks to these enormous subsidies governments are making it cheaper than ever for fossil fuel energy generators to continue polluting the atmosphere.

The study found that the direct effect of eliminating all fossil fuel subsidies would be a reduction in carbon dioxide emissions of as much as 13 percent, as well as having positive knock on effects by reducing fossil fuel demand and increasing investment and jobs in clean energy.

Click Here to see how the $775 Billion is broken down

Click Here to see a perspective on “Hidden Costs” of burning Fossil Fuels

Eurogen is committed to reducing CO2 emissions, creating new jobs and delivering clean, pollutant free green power into the grid on a 24/7/365 basis.

July 16, 2013Permalink

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