Fuel subsidy cuts welcome, but G20 leaders must work harder for U.N. climate agreement
Pittsburgh — G20 leaders took an important step today in agreeing to start phasing out fossil fuel subsidies, but they must work faster and more aggressively to mobilize all the financial tools we need to address climate change for the international summit in Copenhagen this December.
“The commitment of G20 nations to begin phasing out huge subsidies for fossil fuels is a significant step toward reducing carbon emissions,” said Jennifer Haverkamp, Environmental Defense Fund’s international climate policy team lead. “But it only works if the money they free up goes to address climate change.”
“Government tax breaks and direct payments to coal, oil and other fossil fuel companies total as much as $300 billion each year worldwide. So fossil fuel subsidies are huge, but it’s only part of the picture,” said Haverkamp.
“Eliminating subsidies is only one element in a bigger package to get public and private finance flowing,” said EDF’s International Counsel Annie Petsonk. “That means cutting subsidies and it also means capping emissions because that’s what shifts private finance to clean energy.”
“G20 leaders, and especially President Obama, must show they have the political will to drive this deal home,” said Petsonk.
According to the IEA’s 2006 World Energy Report, global energy subsidies totaled $300 billion, with about 80 percent going to fossil fuels. The world’s 20 largest non-OECD nations accounted for $220 billion in subsidies, while OECD nations accounted for $80 billion.
Andrea Welsh / 202-572-3230 / awelsh@edf.org
One of the world’s leading international nonprofit organizations, Environmental Defense Fund (edf.org) creates transformational solutions to the most serious environmental problems. To do so, EDF links science, economics, law, and innovative private-sector partnerships. With more than 3 million members and offices in the United States, China, Mexico, Indonesia and the European Union, EDF’s scientists, economists, attorneys and policy experts are working in 28 countries to turn our solutions into action. Connect with us on Twitter @EnvDefenseFund
Latest press releases
-
Court Should Deny Shadow Docket Requests to Block Methane Pollution Limits
September 20, 2024 -
CFTC Guidance will Strengthen Voluntary Carbon Credits
September 20, 2024 -
Navajo Nation takes significant action to cut methane, assert tribal sovereignty
September 19, 2024 -
Houston-area High School Students Selected as Winners in Environmental Defense Fund Video Contest
September 16, 2024 -
New Bill Would Help Congress Better Understand Legislation’s Climate Impacts
September 12, 2024 -
Hydrogen Blending in New York Gas Pipelines Undermines State Climate Goals
September 12, 2024