More or Less: Behind the Stats Do fossil fuels get $7 trillion in subsidies?
6 snips
Nov 23, 2024 Governments are promising action against climate change while simultaneously pouring trillions into fossil fuel subsidies. An IMF report reveals a staggering $7 trillion in global subsidies, but the implications are complex. Most of this money benefits consumers with lower fuel prices rather than directly aiding oil producers. The discussion dives deeper into how these numbers are calculated and the changing landscape of subsidies, highlighting the disconnect between financial practices and environmental commitments.
AI Snips
Chapters
Transcript
Episode notes
Fossil Fuel Subsidies
- Governments are urged to stop spending $7 trillion annually on fossil fuel subsidies.
- This figure is frequently cited by world leaders, activists, and news outlets.
Source of the $7 Trillion Figure
- The $7 trillion figure originates from an IMF working paper, not an official IMF report.
- It hinges on the definition of "subsidy."
Explicit vs. Implicit Subsidies
- Explicit subsidies, similar to farming subsidies, total $1.3 trillion, significantly less than $7 trillion.
- These primarily benefit consumers, including businesses, not major oil or coal companies.