Global fossil fuel subsidies over $620 billion, – renewable subsidies $88 billion
Fossil Fuel Subsidies Eclipsed $620 Billion in 2011, by Energy Matters, 2 March 13, Globally, governments provided more than USD$620 billion to subsidize fossil fuel energy in 2011 and just $88 billion went to subsidies for renewable energy. According to the Earth Policy Institute (EPI), $131 billion in subsidies went to coal, gas and oil consumed specifically for electricity generation.
“Through these subsidies, governments cut the prices people paid for fossil energy by nearly a quarter – encouraging waste and hindering efforts to stabilize climate.”……
EPI sourced its data from the International Energy Agency’s Fossil Fuel Subsidy Database.
While subsidisation of renewable energy is often criticised, it’s often forgotten the fossil fuel industry has been riding the subsidy gravy train for decades – and its not as though it needs the degree of support it enjoys. The EPI points out Royal Dutch Shell , ExxonMobil, BP, Chevron, and ConocoPhillip collectively raked in $137 billion in profits in 2012.
The International Energy Agency estimates state phasing out all fossil fuel consumption subsidies by 2020 would slash carbon dioxide emissions in that year by close to 2 gigatons.
The Earth Policy Institute (EPI) was founded in 2001 by Lester Brown, the founder and former president of the Worldwatch Institute, to provide a plan of a sustainable future along with a roadmap of how to get from here to there. http://www.energymatters.com.au/index.php?main_page=news_article&article_id=3618
2 Comments »
Leave a comment
1 This month
of the week – Disrupting War & Militarism in Oceania. Active solidarity. Radical practice.
Antinuclear 
Hi Christina,
I found myself in a ‘discussion’ at work yesterday (with an electrician) I was espousing the benefits of renewable energies over Coal Powered stations. He said that our government/s had to pay large amounts of money to Coal-fired Power companies to guarantee supply, among other ‘questionable pieces’ of information … I was not aware of this and wondered if he may be confused with the subsidies that they get from governments .. Could you please suggest a site/s where I might find info on this point?
Many thanks
James Mason
PS> Hope this isn’t too much to ask on top of your work load ..
>________________________________ > From: Antinuclear >To: henryjmason@yahoo.com.au >Sent: Saturday, 2 March 2013 7:17 AM >Subject: [New post] Global fossil fuel subsidies over $620 billion, – renewable subsidies $88 billion > > > WordPress.com >Christina MacPherson posted: “Fossil Fuel Subsidies Eclipsed $620 Billion in 2011, by Energy Matters, 2 March 13, Globally, governments provided more than USD$620 billion to subsidize fossil fuel energy in 2011 and just $88 billion went to subsidies for renewable energy. According ” >
LikeLike
It’s very complicated, but it does make sense for governments to pay Coal power companies, for several reasons. Germany was the first to recognise that a successful transition to renewable energy did mean co-operation with coal powered industries. They are needed for backup, and cannot be expected to keep going, and meet all their costs, while not in fact, getting the revenue that they used to get, as communities move to renewable energy. As renewable energy takes over, and supplies the famous “base load” power, or its equivalent – extra power when needed, coal powered industries need some government support in the costly business of shutting down, too.
“The figure of 2 billion euros to the German coal industry actually represents a significant drop from the 5 billion the industry got in 1999. Much of the money Poland is now paying is associated with historical liabilities, and since 2011 the country has to follow EU regulations that only authorise state aid for the purpose of closing mines, treating damage to miners’ health, and addressing environmental problems from past mining.” http://oecdinsights.org/2013/02/11/fossil-fuel-subsidies-billions-up-in-smoke/
Joint report by IEA, OPEC, OECD and World Bank on fossil-fuel and other energy subsidies: An update of the G20 Pittsburgh and Toronto Commitments” prepared for the G20 Meeting of Finance Ministers and Central Bank Governors (Paris, 14-15 October 2011) and the G20 Summit (Cannes, 3-4 November 2011) http://www.oecd.org/site/tadffss/49006998.pdf
LikeLike