Ahead of G20 Summit, study says bloc poured USD 1.4 trillion into fossil fuels

G20 countries allocated a staggering USD 14 trillion of public funds to support fossil fuels in 2022 aiming to counter the impact of their soaring prices due to the Ukraine war and strengthen energy reserves a new study says The study by Winnipegbased Canada awardwinning independent think tank International Institute for Sustainable Development IISD and partners comes as G20 leaders prepare for their summit meeting scheduled for September 910 in New DelhiIndia the current G20 president cut fossil fuel subsidies by 76 percent between 2014 and 2022 while boosting support for clean energy This puts India in a strong position to lead on this issue the study says The astonishing sum of USD 14 trillion includes fossil fuel subsidies USD 1 trillion stateowned enterprise investments USD 322 billion and money lent by public financial institutions USD 50 billion according to the studyThis total is more than double what was seen before the COVID19 pandemic and the energy crisis in 2019 it said Tara Laan a Senior Associate at IISD and the lead author of the study said These figures are a stark reminder of the massive amounts of public money G20 governments continue to pour into fossil fuels despite the increasingly devastating impacts of climate changeShe stressed that its urgent for the G20 to address the issue of fossil fuel subsidies at the summit especially when climate change effects are becoming worse The G20 has the power and the responsibility to transform our fossilbased energy systems It is crucial for the bloc to put fossil fuel subsidies on the Delhi Leaders Summit agenda and take meaningful actions to eliminate all public financial flows for coal oil and gas she saidFinancial support for fossil fuels worsens humanmade climate change and its harsh effects such as more heatwaves wildfires and heavy rains The report underlines that giving subsidies that lower fossil fuel prices is a problem because it encourages more use of these harmful energy sources The researchers propose a solution G20 nations could get an extra USD 1 trillion each year by setting minimum carbon taxes ranging from USD 25 to USD 75 per metric ton of CO2 equivalent based on the countrys incomeCurrent taxes on fossil fuels in the G20 are too low averaging just USD 32 per metric ton of CO2 equivalent This is worrying because fossil fuel companies made huge profits during the energy crisis last year according to the report It also suggests a clear plan to get rid of fossil fuel subsidies Developed countries should stop them by 2025 and emerging economies should end them by 2030 at the latestThe authors say that instead of just calling these subsidies inefficient there should be specific reasons for keeping them like when theyre needed for energy access Also the subsidies should only help those who genuinely need them not be a poor way of helping peopleThe report shows that if the bloc shifts a bit of the trillions spent on fossil fuel subsidies it could make a big difference This could help bridge the gap for wind and solar energy USD 450 billion a year tackle world hunger USD 33 billion a year give clean electricity and cooking methods to everyone USD 36 billion a year and help developing nations with climate funds USD 17 billion a yearThe study underlines that stateowned companies and public financial groups have a big role to play It says governments should set a clear date for them to make plans to go carbonneutral which will help them avoid risks tied to investing in fossil fuelsTara Laan summed it up saying Fossil fuel companies made big profits during the energy crisis last year so they dont want to change But governments can push them in the right direction G20 countries which account for 85 per cent of the worlds GDP and 80 percent of global greenhouse gas GHG emissions failed to reach an agreement on key issues crucial for limiting global warming to 15 degrees Celsius at the climate ministers meeting in Chennai last monthThese included phasing down unabated fossil fuels increasing renewable energy and providing lowcost financing for developing countriesEarlier in July the bloc had failed to reach a consensus on tripling renewable energy capacity to 11000 gigawatts by 2030 phasing down the unabated use of fossil fuels and plans to finance the transition during the Energy Ministerial Meeting Nations had agreed to phase out inefficient fossil fuel subsidies at the COP26 climate summit in Glasgow two years agoThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever