Unpacking Fossil Fuel Subsidies: A Multi-Trillion Dollar Paradox

Governments around the world have promised to fight climate change. But are they also pumping an absolutely massive amount of money into subsidies for fossil fuels? In 2022, an IMF working paper estimated that global subsidies for fossil fuels totalled $7 trillion. But when you dig into that research, you find that this number might not mean what you think it does. We explain how they reached that conclusion, with the help of Angela Picciariello from the International Institute for Sustainable Development, and Nate Vernon, one of the co-authors of the IMF paper.