Fossil Fuel Subsidies Reach Shocking $5 Trillion Per Year: Broad Definition Cited by IMF

By Mathew Carr

July 12, 2021 (LONDON): IMF wants to make market signals work for the new climate economy, not against it, according to the IMF’s Kristalina Georgieva, managing director.

IMF repeated an assessment of the huge cost of fossil fuel subsidies:

As politically challenging as this may be, the world needs to rid itself from all forms of fossil fuel subsidies. Defined broadly to include undercharging for supply and environmental and health costs, they are equivalent to more than 5 trillion dollars annually—and we will soon publish an updated research on the exact composition of these subsidies,” she said in a speech.

Key is putting a robust price on carbon as we discussed at the G20 High-Level Tax Symposium. This will provide a critical signal for redirecting private investment and innovation to clean technologies, and to incentivize energy efficiency. Our research is clear—without it we simply can not reach the goals of the Paris Agreement.

Link: https://www.imf.org/en/News/Articles/2021/07/11/sp071121-md-on-global-policies-and-climate-change

Photo by Chris LeBoutillier on Pexels.com

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