Governments are doing precisely the opposite of what they should be doing, as the climate crumbles.
The rebounding fuel prices and energy use coupled with hesitant progress on pricing reforms, are likely to push fossil-fuel subsidy values higher in 2021 as pandemic conditions improve and economies start to re-open, according to a report published by the G20 presidency Italy.
G20 ministers failed in the past week to agree to phase out fossil fuel subsidies by 2025.
Fossil fuel subsidies have the economic impact of a negative carbon price. That is, they reward bad behavior – the production and use of coal, natural gas and oil.