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Protecting Nature by Reforming Environmentally Harmful Subsidies: The Role of Business

Industry-specific reviews of government subsidies have been much more common than analyses examining several natural resource sectors at once. Yet there is a great deal of overlap across sectors. Indeed, it is the combination of support provided by multiple levels of government and government programs, across numerous natural resource areas, that can accelerate resource depletion, pollution, or habitat loss in particular regions.

An Introduction to Energy Subsidies Presentation Slides, March 2023

An overview on the varied approaches used to subsidize industries and how the scale of support flowing to fossil fuels and other environmentally harmful activities undermines efforts to decarbonize the economy and protect global biodiversity. The slides highlight how at present subsidies to fossil fuel greatly exceed carbon revenues from taxes and permits, and environmentally harmful subsidies overall greatly exceed EHS reduction targets agreed to under the Kunming-Montreal Global Biodiversity Framework.

Government support in industrial sectors: a synthesis report

Industrial subsidies take on a growing importance in trade discussions. Yet assessing the scope and scale of government interventions in manufacturing remains notoriously difficult due to a persistent lack of reliable and comparable data. With many governments failing to provide sufficient information, attention has increasingly turned to firm-level data as a possible alternative for measuring industrial subsidies. Using this approach, recent OECD work has identified and quantified government support across key industrial sectors and policy instruments.