Empty promises: G20 subsidies to oil, gas and coal production
G20 country governments are providing $452 billion a year in subsidies for the production of fossil fuels. Their continued support for fossil fuel production marries bad economics with potentially disastrous consequences for the climate. In effect, governments are propping up the production of oil, gas and coal, most of which can never be used if the world is to avoid dangerous climate change. It is tantamount to G20 governments allowing fossil fuel producers to undermine national climate commitments, while paying them for the privilege.
Back in 2009, leaders of the G20 countries pledged to phase-out ‘inefficient’ fossil fuel subsidies. Indeed, few subsidies are more inefficient than those to fossil fuel production. Yet the evidence presented in this report points to a large gap between G20 commitment and action. That gap is reflected in $452 billion in average annual subsidies from G20 governments to fossil fuel production in 2013 and 2014. To put this figure in context, it is almost four times the amount that the International Energy Agency (IEA) estimates was provided in all global subsidies to renewables in 2013.
This report documents, for the first time, the scale and structure of fossil fuel production subsidies in the G20 countries. The evidence points to a publicly financed bailout for some of the world’s largest, most carbon-intensive and polluting companies.