"Global Fossil Fuel Subsidies Reached $7 Trillion in 2022, an All-Time High"

"Global subsidies for fossil fuels reached $7 trillion in 2022, an all-time high, according to the International Monetary Fund.

An analysis of policies in 170 countries found that explicit subsidies, such as price caps on fuel, accounted for 18 percent of this total. With Russia’s war on Ukraine roiling energy markets, many governments have placed limits on the price of fossil fuels, giving money back to consumers when prices exceeded those limits.

The other 82 percent of fossil fuel subsidies were implicit. These included tax breaks for oil firms, but also the unpaid cost of climate change and air pollution as a result of burning fossil fuels. Consumers do not pay directly for the damage caused by their use of fossil fuels. Overall, undercharging for these damages amounted to 60 percent of subsidies, the analysis found."

Yale Environment 360 had the story August 31, 2023.


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Source: YaleE360, 09/01/2023