Shifting energy subsidies from fossil fuels to renewable energy

Fossil-fuel subsidies are one of the biggest financial barriers hampering the world’s shift to renewable energy. The International Monetary Fund (IMF) says that about $5.9 trillion was spent on subsidizing the fossil fuel industry in 2020 alone, including through explicit subsidies, tax breaks, and health and environmental damages that were not priced into the cost of fossil fuels. That’s roughly $11 billion a day.

Fossil fuel subsidies are both inefficient and inequitable. Across developing countries, about half of the public resources spent to support fossil fuel consumption benefits the richest 20 percent of the population, according to the IMF.

Shifting subsidies from fossil fuels to renewable energy not only cuts emissions, it also contributes to the sustainable economic growth, job creation, better public health and more equality, particularly for the poor and most vulnerable communities around the world.

(Learn More: United Nations- Climate Action)