IEA estimates fossil fuel subsidies at US$312 billion

Abolishing fossil fuel subsidies would boost the world’s economy, environment and energy security, said the International Energy Agency (IEA), the energy watchdog to 28 industrialized countries, in its annual World Energy Outlook. The report estimated these subsidies to cost a total of US$312 billion in 2009, mostly in developing countries. In comparison, subsidies for renewable energy amounted to US$57 billion. Eliminating subsidies for fossil fuel consumption by 2020 would reduce global energy demand by 5% and reduce carbon emissions by nearly 6%, said the IEA report. Achim Steiner, head of the U.N. Environment Program, said that a G20 push to phase out subsidies for the fossil fuel industry would be a “good start” to slow climate change. (November 10, 2010)