Morocco pledges to ax fossil fuel subsidies
Any time we write about the rapidly improving economics of renewables, it's highly likely we'll get some sarcastic comments about government subsidies and crony capitalism.
Yet you can't talk about subsidies for renewables without also remembering that fossil fuels are subsidized too. In fact one recent study suggesting that world subsidies for coal, oil, gas and the like stand at $5.3 trillion a year, more than the total of global healthcare spending.
That's a lot of money.
So it's encouraging news, reported over at RTCC, that Morocco has become the first country to include axing fossil fuel subsidies as part of its carbon cutting pledge for the upcoming climate talks. This commitment is part of a larger effort that will see Morocco commit to a 32% cut in emissions by 2030.
With oil prices as low as they are, now would be a perfect time for other countries to follow Morocco's lead—either slashing oil, coal and gas subsidies or raising their gas taxes before prices start to rise again.
Given the astounding external costs of burning fossil fuels, this isn't just the right thing to do. It's sound economics too.