Around the world, governments and public finance institutions continue to subsidize fossil fuels. It’s time to shift support to an energy system that provides clean energy and universal energy access for the poor.
Globally, direct and indirect government subsidies, development bank financing, bilateral finance and aid money continue to promote the extraction, production and consumption of oil, gas and coal. The perpetuation of the fossil fuel industry has major impacts on the global environment and international development, creating local environmental pollution, contributing to climate change with its follow-on environment and development impacts, perpetuating human rights abuses, and often ensnaring developing countries in a resource curse – a cycle of debt and inequality.
The elimination of fossil fuel subsidies, beginning with producer subsidies that support already profitable corporations, is the first step in a clean energy transition. Eliminating these subsidies would reduce environmental pollution and development impacts and would promote emissions reductions that could help avoid some of the most dangerous consequences of global warming.
Further shifting this public money to promote clean energy and to increase energy access for the poor in developing countries would help promote a clean energy path, alleviate poverty, and improve access to health services and education.
Learn more about Oil Change International’s international energy finance campaigns: