G7 nations set deadline for phasing out fossil fuel subsidies

fossil fuel subsidies image
Video screen capture ODI

Any time we talk about renewables, trolls and naysayers are likely to complain about government subsidies. What's often forgotten, however, is that fossil fuels get subsidies too. In fact, most estimates suggest that those subsidies dwarf any given to clean tech by several orders of magnitude.

But all that may be about to change.

The Guardian reports that G7 leaders have, for the first time, committed to a deadline for phasing out most state subsidies for coal, oil and gas. And that deadline is 2025.

The full text of the leaders' declaration, which also includes statements on trade, migration, health and more can be read here. But here's the paragraph that's capturing many environmentalists' attention:

"Given the fact that energy production and use account for around two-thirds of global GHG
emissions, we recognize the crucial role that the energy sector has to play in combatting climate
change. We remain committed to the elimination of inefficient fossil fuel subsidies and encourage all
countries to do so by 2025."

Of course, phasing out direct subsidies is just one part of the puzzle. If we're truly going to have a level playing field on energy, then we're also going to need to price-in the true costs of using fossil fuels. And that could get expensive.

G7 nations set deadline for phasing out fossil fuel subsidies
With oil prices low, it's a good time to talk about phasing out fossil fuel welfare schemes.

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