Fossil Fuels Received $5.9 Trillion In Subsidies in 2020, Yale Report Finds

[Caribbeans]

YALE E360 Digest
October 6, 2021

Coal, oil, and natural gas received $5.9 trillion in subsidies in 2020 — or roughly $11 million every minute — according to a new analysis from the International Monetary Fund.

Explicit subsidies accounted for only 8 percent of the total. The remaining 92 percent were implicit subsidies, which took the form of tax breaks or, to a much larger degree, health and environmental damages that were not priced into the cost of fossil fuels, according to the analysis.

“Underpricing leads to overconsumption of fossil fuels, which accelerates global warming and exacerbates domestic environmental problems including losses to human life from local air pollution and excessive and road congestion and accidents,” authors wrote. “This has long been recognized, but globally countries are still a long way from getting energy prices right.”

The report found that 47 percent of natural gas and 99 percent of coal is priced at less than half its true cost, and that just five countries — China, the United States, Russia, India, and Japan — account for two-thirds of subsidies globally. All five countries belong to the G20, which in 2009 agreed to phase out “inefficient” fossil fuel subsidies “over the medium term.”....more
https://e360.yale.edu/digest/fossil-fuels-received-5-9-trillion-in-subsidies-in-2020-report-finds

RELATED:

ExxonMobil announces second-quarter 2022 results

IRVING, Texas – July 29, 2022 – Exxon Mobil Corporation today announced estimated second-quarter 2022 earnings of $17.9 billion, or $4.21 per share assuming dilution...more
https://corporate.exxonmobil.com/News/Newsroom/News-releases/2022/0729_ExxonMobil-announces-second-quarter-2022-results



Always money to give to Fossil Fuel producers and war but nothing for the people

Why does nothing EVER get done?

[2naSalit]

1. That needs to end.

[Autumn]

2. Fuck that bullshit.

[walkingman]

3. Fossil fuel companies control governments world-wide. It is shameful.

[kacekwl]

4. When exactly does

this stop ? I never want to hear from either party we don't have money to pay for that. NEVER.

[Finishline42]

5. Agree, it needs to stop

But what I would like to know is how much of those subsidies are normal business deductions for things like depreciation, exploration, etc and how much is specific to fossil fuels?

[Caribbeans]

6. Why

is ANY company that makes a profit subsidized for even one cent?

The system is beyond broken when Exxon makes $18 BILLION IN ONE YEAR and gets "subsidies"

$18 BILLION DOLLARS

A discussion about nationalizing oil would be in order. Let's ask Mohammed Mossadeq about how to run energy companies.

Oh that's right, he's dead. Thanks to those who are now collecting "subsidies"

It would be hilarious if it wasn't so GD sad. Like some kind of parody.

[Finishline42]

7. There are normal deductions for investments in equipment

Is that being counted as being subsidized? Because if it is, it shouldn't be because that's the same deduction a company that makes solar panels would have.

[Duppers]

8. K & R +100

This is such an enormously important issue - The Press should be giving it far greater attention and coverage.

Thanks for posting this, Caribbeans.