OECD/IEA: Global fossil fuel subsidies in 2019 amounted to nearly $500 billion

Despite the climate crisis, the two intergovernmental bodies (OECD/IEA) jointly reported that governments around the world provided nearly $500 billion in subsidies
to fossil fuels in 2019.

According to the International Energy Agency (IEA), subsidies for fossil fuel consumption alone decreased by $120 billion, or 27%, compared to 2018, mainly due to lower
oil and gas prices.

Governments that strongly support the use of oil and gas include Iran, Saudi Arabia, Russia, Indonesia, Egypt, India and Venezuela, among others
.

Meanwhile, in 2019, OECD subsidies for fossil fuel production (in the form of cash, tax breaks and other credits) to 44 rich and emerging economies increased by 38% to $55 billion
, according to the Organization for Economic Co-operation and Development (OECD).
(OECD) report
.

In a joint statement issued over the weekend, the IEA and OECD said consumption and production subsidies for 77 economies combined for $478 billion last year, down 18 percent
from the previous year.

Nathalie Girouard, OECD Minister for Environmental Performance and Information, said: "The fiscal burden of subsidies means fewer resources are potentially used for clean energy research, innovation or other public funding
to strengthen social safety nets.

Burning oil, gas and coal accounts for more than 80% of global primary energy use, a major source
of greenhouse gases that contribute to global warming.

Governments have long recognized the need to stop the production and use
of fossil fuels.
Back in 2009, G20 countries, which account for 80% of the world's CO2 emissions
, pledged to phase out subsidies for fossil fuels.

However, so far, this promise
has not been fulfilled.

OECD Secretary-General Angel Gurria said in a statement: "I regret
being frustrated by support for phasing out fossil fuels.
Subsidizing fossil fuels is an ineffective use of public funds and exacerbates greenhouse gas emissions and air pollution
.
”

Industry insiders point to the need to stop financing
the production and use of oil, gas and their derivatives.
In December, 631 institutional investors with more than $37 trillion in assets under management agreed to the Paris climate treaty's goal of capping global warming at 2 degrees Celsius and calling on governments to "phase out fossil fuel subsidies within a specified period.
"

Fatih, executive director of the IEA, said that as oil, gas and coal prices fell to their lowest point in the first half of 2020 due to the lockdown announced due to the pandemic, governments need to support the energy needs of their most vulnerable citizens while using the freed funds for a green economy
.

"The low price of fossil fuels today offers a great opportunity
for countries to phase out consumer subsidies," he said.
It is crucial to
avoid a market bias towards one that favors polluting and inefficient technologies.
”

According to the Center for Energy and Clean Air, burning fossil fuels causes about 4.
5 million premature deaths
each year.
IEA energy analysts Wataru Matsumura and Zakia Adam wrote in a blog post last year: "Many subsidies are poorly targeted, benefiting more affluent segments that use subsidized fuels
.
" Such untargeted subsidies encourage wasteful consumption, drive up emissions, and strain government budgets
.
”