A recent blog has placed a magnifying glass on subsidies for fossil fuels globally.
The International Monetary Fund (IMF) says subsidies for fossil fuels has reached astronomical levels, at about $7 trillion. Compare this with a report about climbing costs of wind energy projects that are severely under pressure, so much so that they are being scrapped or paused.
This is attributed to Russia’s invasion of Ukraine and the economic recovery from the pandemic, according to an article by the IMF’s Simon Black, Ian Perry and Nate Vernon.
This amount of fossil fuel subsidies is reportedly superceding budgets of basic needs such as education and healthcare, according to the blog.
Now there is a call to remove fossil-fuel subsidies to curb costs and account for environmental implications.
Scrapping subsidies for fossil fuels would also redistribute income as fuel subsidies benefit rich households more than the poor.
Read further: https://www.imf.org/en/Blogs/Articles/2023/08/24/fossil-fuel-subsidies-surged-to-record-7-trillion?utm_medium=email&utm_source=Gove livery