Fossil Fuel Subsidies:
Pouring Fuel on the Fire
Our world's reliance on fossil fuels has inadvertently triggered the most significant unintended consequence in history—climate change. Despite climate catastrophes, like this week’s hurricane Idalia, fossil fuel subsidies have escalated to new peaks.
A new IMF report revealed that global fossil fuel subsidies reached a record $7 trillion in 2022 (that's $13 million a minute) or 7.1 percent of the world’s GDP. Explicit subsidies (undercharging for fuel) have more than doubled since 2020 but are still only 18 percent of the total subsidy, while nearly 60 percent is due to undercharging for global warming and local air pollution. The report recommends ending the subsidies to help prevent global warming and avoid some of the 1.6 million deaths attributed to air pollution each year.