The IMF estimate of how much the fossil fuel industry benefits from global subsidies.
From the Guardian
The IMF found the production and burning of coal, oil and gas was subsidised by $5.9tn in 2020, with not a single country pricing all its fuels sufficiently to reflect their full supply and environmental costs. Experts said the subsidies were “adding fuel to the fire” of the climate crisis, at a time when rapid reductions in carbon emissions were urgently needed.
The comprehensive IMF report found that prices were at least 50% below their true costs for 99% of coal, 52% of diesel and 47% of natural gas in 2020. Five countries were responsible for two-thirds of the subsidies: China, the US, Russia, India and Japan. Without action, subsidies will rise to $6.4tn in 2025, the IMF said.
The G20 countries emit almost 80% of global greenhouse gases. More than 600 global companies in the We Mean Business coalition, including Unilever, Ikea, Aviva, Siemens and Volvo Cars, recently urged G20 leaders to end fossil fuel subsidies by 2025.
This just shows what a pittance $3.5trillion is over 10 years really is.
No wonder they are fighting any climate action tooth and nail.
This shows the size of the uphill battle we are fighting.
One would think that the profiteers from this would have a Planet B somewhere.
From the IMF Report
I. INTRODUCTION
The issue of energy subsidy reform remains high on the international policy agenda,
reflecting the need for countries to pledge carbon reductions ahead of the Paris 2015 United Nations Climate Change Conference, the opportunities for reform created by low energy prices, and continuing fiscal pressures in many countries. The sustained interest in energy subsidy reform also reflects increasing recognition of the perverse environmental, fiscal, macroeconomic, and social consequences of energy subsidies:
- Energy subsidies damage the environment, causing more premature deaths through local air pollution, exacerbating congestion and other adverse side effects of vehicle use, and increasing atmospheric greenhouse gas concentrations.
- Energy subsidies impose large fiscal costs, which need to be financed by some combination of higher public debt, higher tax burdens, and crowding out of potentially productive public spending (for example, on health, education, and infrastructure), all of which can be a drag on economic growth.
- Energy subsidies discourage needed investments in energy efficiency, renewables, and energy infrastructure, and increase the vulnerability of countries to volatile international energy prices.
- Energy subsidies are a highly inefficient way to provide support to low-income households since most of the benefits from energy subsidies are typically captured by rich households.
That, as we say, says it all.