Fossil fuel subsidies on the rise

Fossil fuel subsidies on the rise

Despite the climate crisis and extreme weather this year, governments are continuing to pay out fossile fuel subsidies that are making the problems worse. / Statista

By Martin Armstrong for Statista October 12, 2023

According to calculations by the International Monetary Fund (IMF), $7 trillion were spent on direct and indirect subsidies for fossil fuels in 2022. The war in Ukraine and the resulting rise in energy prices are partly responsible for the significant increase in the previous year, reports Statista.

But even before that, the trend was already upwards, as this infographic illustrates. Subsidies are also likely to increase in the future. According to analysts, the reason for this is the economic growth of the Global South and the resulting increase in the consumption of coal, oil and gas.

Government support for fossil fuels is equivalent to just over seven% of the planet's economic output. A direct comparison with another important government budget item, for example, shows how enormous this sum is. Education spending by all countries combined accounts for 4.3% of global gross domestic product.

Countering fossil fuel subsidies, according to the IMF, would not only offer a chance to put humanity back on track to meet its climate goals, but could also prevent 1.6mn premature deaths per year and increase government revenues by $4.4 trillion.

You will find more infographics at Statista

#ESG #ClimateCrisis #renewables

Read in IntelliNews Pro

Get IntelliNews Pro

Related Content

Kazakhstan has no plans to join BRICS, says Astana

Russia’s Rosatom to support nuclear projects across Africa at AEW2024

Global warming will increase crop yields in Global North, but reduce them in Global South

Kazakhstan has no plans to join BRICS, says Astana

Russia’s Rosatom to support nuclear projects across Africa at AEW2024

Global warming will increase crop yields in Global North, but reduce them in Global South

Data

Turkey sticks with 50% policy rate for seventh straight month

Uncertainty over the pace of improvement in inflation has increased in light of incoming data, says central bank.

Polish core inflation growth rate jumps to 4.3% y/y in September

The acceleration comes after two months of easing and is in line with the headline inflation rate.

Bulgaria’s consumer inflation at 1.2% in September

Consumer prices in Bulgaria rose by 1.2% in September 2024 compared to the same period last year (chart), according to preliminary National Statistical Institute (NSI) data. Month on month, the Consumer Price Index (CPI) decreased by 1%.

Hungary’s industrial performance among weakest in EU in August

Output in Hungary fell 4.1% y/y and 0.5% m/m.

World Bank says Bangladesh GDP growth to shrink in FY25

Bangladesh's economic recovery remains sluggish as high inflation, a balance of payments deficit, and persistent financial sector challenges dampen progress, according to the World Bank's latest Bangladesh Development Update.

Turkey sticks with 50% policy rate for seventh straight month

Polish core inflation growth rate jumps to 4.3% y/y in September

Bulgaria’s consumer inflation at 1.2% in September

Hungary’s industrial performance among weakest in EU in August

World Bank says Bangladesh GDP growth to shrink in FY25

Dismiss

Chat with usLiveChat