A report has found that the G20 poured record levels of public money into fossil fuels last year despite having promised to reduce some of it.
According to the International Institute for Sustainable Development (IISD) thinktank, the amount of public money flowing into coal, oil and gas in 20 of the world’s biggest economies reached a record $1.4tn(£1.1tn) in 2022, even though world leaders agreed to phase out “inefficient” fossil fuel subsidies at the Cop26 climate summit in Glasgow two years ago.
The report comes ahead of a meeting of G20 countries in Delhi next month that could set the tone for the next big climate conference, which takes place in the United Arab Emirates in November.
In his reaction, Tara Laan, a senior associate with the IISD and lead author of the study said that It is crucial that leaders put fossil fuel subsidies on the agenda, said “These figures are a stark reminder of the massive amounts of public money G20 governments continue to pour into fossil fuels – despite the increasingly devastating impacts of climate change.”
Fossil fuels release pollutants when burned that heat the planet and make extreme weather more violent. They also dirty the air with toxins that damage people’s lungs and other organs. Scientists estimate the air pollution from fossil fuels kills between 1 and 10 million people each year.
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However, beyond the overlooked costs to society, governments have lowered prices further by supporting fossil fuel producers and their customers with public money. The report found G20 governments last year provided fossil fuels $1tn in subsidies, $322bn in investments by state-owned enterprises and $50bn in loans from public finance institutions.
The authors found that the total amount was more than double what they had provided in 2019.
Recall that G20 leaders agreed to phase out inefficient fossil fuel subsidies “over the medium term” as far back as 2009. At the Cop26 climate summit a decade later, world leaders agreed to accelerate these efforts.
But since then, living costs have risen sharply as a result of the Covid-19 pandemic and the Russian invasion of Ukraine. The latter sparked an energy crisis that prompted many governments to intervene in the costs of fuel and cap energy bills.
Scientists and doctors have long warned of the dangers of subsidising fuels that kill people while also blocking efforts to clean up economies. More recently, energy experts and economists have joined the chorus of voices calling fossil fuel subsidies into question.
Story was adapted from the Guardian.
