World governments support the fossil fuel industry with $11 million per minute... What about its emissions?

A new analysis issued by the International Monetary Fund revealed that the production and burning of coal, oil and gas cost world governments $5.9 trillion in 2020, an average of $11 million globally per minute.

In a report published by the British newspaper "The Guardian", author Damian Carrenton quotes International Monetary Fund experts as saying that this global support for the fossil fuel industry is pouring more gasoline on the fire of the global climate crisis, at a time when the planet needs to redouble efforts to reduce emissions carbon.

Experts stress that government subsidies for fuel prices and tax exemptions represent a fertile environment for producers to evade the consequences of pollution, deaths, health problems, heat waves and other effects of polluting emissions.

worrying numbers

International Monetary Fund analysts add that setting the prices of fossil fuels - in a way that reflects the true cost of its extraction and production - is the only way to reduce carbon dioxide emissions globally by more than a third of current levels, and this step will be extremely important to achieve the internationally agreed goal of increasing temperatures. By 1.5 degrees Celsius, it will be a major focus of discussions at the United Nations Climate Change Conference in November.

Agreeing on new rules for carbon markets - by determining the appropriate cost of pollution from this industry - is another goal of the United Nations Climate Change Conference 2021. And the International Monetary Fund researchers said that stopping governments subsidizing fossil fuels would help avoid about one million deaths. annually due to air pollution, as well as saving trillions of dollars.

Some countries are reluctant to raise energy prices, because they think that it will hurt the poor, but curbing fossil fuel prices is an ineffective way to help the poor, because most of the benefits The wealthier classes reap it, and it would be better to direct resources to help the vulnerable classes directly."

Barry added that with 50 countries committing to net zero emissions by mid-century, and more than 60 carbon repricing schemes around the world, there are some encouraging signs, "but we are still at the beginning, and there is a long and thorny way to go."

The writer states that the “Group of Twenty” agreed in 2009 to phase out fossil fuel subsidies, and in 2016 the “Group of Seven” set 2025 as a deadline for achieving this goal, but no real progress was made.

And last July, a report showed that the "Group of Twenty" countries have subsidized fossil fuels with trillions of dollars since 2015, the year that witnessed the signing of the Paris climate agreement.

“Stabilizing global temperatures requires urgently moving away from fossil fuels rather than pouring fuel on fire, and it is important that governments stop subsidizing this declining industry, and that they act,” said Mike Coffin, senior analyst at Carbon Tracker. accelerating the transition to low-carbon energy.

The "Group of Twenty" countries are responsible for about 80% of global (European) greenhouse gas emissions

The need for global efforts

The IMF report found that prices are at least 50% lower than the real costs of 99% of coal, 52% of diesel, and 47% of natural gas, in 2020.

According to the report, five countries are responsible for two-thirds of government subsidies to the fossil fuel industry, namely China, the United States, Russia, India and Japan.

The International Monetary Fund said that the support will rise to 6.4 trillion dollars in 2025 if no urgent action is taken.

Options to reduce carbon emissions include encouraging the manufacture of electricity generators that operate on renewable energies, and making electric cars available at reasonable prices.

Barry says international cooperation is important to allay fears that rising fossil fuel prices will have an impact on countries' competitiveness.

For her part, Maria Pastokhova, a researcher at the E3G Center, believes that "the IMF report provides a realistic reading, and highlights one of the main problems in the global economy. The International Energy Agency asserts that the world needs 5 trillion dollars by 2030 to put the world on the path to a climate-safe world. It is exciting to realize that much-needed change must begin immediately, with major economies involved in subsidizing the fossil fuel industry."

Ipek Jinsu - from the Institute of Overseas Development - says that the reform requires support for consumers from the poor groups who will be affected by higher prices, as well as workers in the affected industries, as well as media campaigns to clarify how to redistribute those sums to societies in the form of health care, education and other social services.

Many oppose subsidy cuts because they believe governments will keep the money without giving anything in return.

The writer concludes by saying that the G20 countries are responsible for about 80% of global greenhouse gas emissions, and more than 600 global companies within the We Mean Business alliance urged the group's leaders recently to end fossil fuel subsidies by 2025.