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

Planet-heating emissions reach new record in 2023, says WMO report

Global electricity demand is surging faster than expected, warns IEA

Can the BRICS beat the G7?

Planet-heating emissions reach new record in 2023, says WMO report

Global electricity demand is surging faster than expected, warns IEA

Can the BRICS beat the G7?

Data

Germany steps up Iraqi Kurdish deportations under secret Baghdad deal

Germany deported 36 refugees to the Kurdistan Region via Baghdad International Airport on October 22, marking the second such operation under a recently revealed secret agreement with Iraq's central government.

Romania’s public debt hiked by €3.3bn in July to reach 52% of GDP

Annual rise in public debt is expected reach a new record in 2024 of over €28bn, surpassing the €25.9bn net borrowing in the Covid year 2020.

Unemployment in Slovakia inches down to 3.83% in September

The unemployment level in Slovakia inched down to 3.83% in September. This is down by 0.04 percentage points month on month and by 0.15 pp year on year.

Hungarian National Bank takes a pause in easing cycle

Central bank leaves base rate unchanged at 6.50%, but most analysts expect a rate cut to 6.25% by the end of 2024.

Polish retail sales "collapse" in September, but analysts say strong fundamentals remain intact

Analysts point to weaker consumption linked to slowdown in nominal wage growth and rebound of inflation.

Germany steps up Iraqi Kurdish deportations under secret Baghdad deal

Romania’s public debt hiked by €3.3bn in July to reach 52% of GDP

Unemployment in Slovakia inches down to 3.83% in September

Hungarian National Bank takes a pause in easing cycle

Polish retail sales "collapse" in September, but analysts say strong fundamentals remain intact

Dismiss

Chat with usLiveChat