Overseas Development Institute Urges Phasing out of Fossil Fuel Subsidies

Citing the latest estimates by the International Energy Association that subsidies to fossil fuel producers totaled $523 billion worldwide in 2011, the Overseas Development Institute urges the phase-out of such subsidies (by 2020 for G20 countries). This “would eliminate the perverse incentives that drive up carbon emissions, create price signals for investment in a low-carbon transition and reduce pressure on public finances.” See Time to Change the Game: Fossil Fuel Subsidies and Climate Executive Summary at: http://www.odi.org.uk/sites/odi.org.uk/files/odi-assets/publications-opinion-files/8669.pdf; full report is available from: http://www.odi.org.uk/subsidies-change-the-game. A similar message was contained in related report by the International Monetary Fund, Energy Subsidy Reform: Lessons and Implications, published in Spring 2013, and summarized at the WCR archive at:  https://workandclimatechangereport.org/2013/04/23/the-imf-decries-the-distortions-of-fossil-fuel-subsidies-working-at-a-cross-purpose-with-climate-compatible-investment/.

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