G20 Agrees to Eliminate Fossil Fuel Subsidies

Leaders from the world’s top industrial countries, as well as several other smaller, developing nations, have signed a phase out scheme for subsidies for fossil fuels. The G20 Summit, which took place in Pittsburgh, September 24-25, saw the globe’s 20 top leaders agree to put an end to fossil fuel subsidies.

In addition, G20 leaders asked for specific support to be given to poorer nations which would be significantly impacted by increased prices for fossil fuels. Many of the leaders said at the Summit that out-of-date fossil fuel subsidies are increasing inefficiency, reducing energy security, and hindering clean energy investments.

President Obama told media that the agreement will significantly withdraw funding from the fossil fuels industry. Up to $300 billion in global subsidies will be removed from fossil fuels. Reports have indicated that eliminating fossil fuel subsidies globally, could decrease the industry’s carbon footprint by 10 percent by 2050.

The Environmental Law Institute conducted reports on the U.S.’s ability to decrease fossil fuel subsidies which indicated that the U.S. had given out $72 billion in fossil fuel subsidies over the last seven years.  Ironically more than half of the subsidies for renewable energy were also given to corn-based ethanol. Fossil fuels may continue to dominate the world market for still some time to come.