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G7 Set to Kill Fossil Fuel Subsidies by 2025—Though We Could Get There 'Twice as Fast'


#1

G7 Set to Kill Fossil Fuel Subsidies by 2025—Though We Could Get There 'Twice as Fast'

Deirdre Fulton, staff writer

For the first time, the G7 has set an actual deadline for ending massive fossil fuel subsidies: the year 2025.

But while it's great to "finally have an endgame for these perverse incentives," as Overseas Development Institute research fellow Shelagh Whitley wrote on Friday, "we could easily get there twice as fast."

What's more, Whitley argued, "In spite of these powerful proclamations, G7 governments continue to prop up a doomed fossil fuel industry."


#2

This will hardly end subsidies as direct subsidies are the very smallest part of how Fossil fuel industries are subsidized.

When the tarsands plant destroy the Environment in North Alberta, and when the Gulf of Mexico destroyed by all of those oil spills by the oil majors wherein fines levied are a fraction of the true costs than the industries are subsidized.

Were they to pay the TRUE and full costs of the environmental damage the cause, they would not return a dime in profits to the shareholder.


#3

@SuspiraDeProfundis All true. As enormous as direct subsidies are to the fossil industry (the IMF says $5.3 trillion per year globally, or $10 million per minute), the other "negative externalities" are even bigger. A 2012 Harvard study calculated the medical costs of burning coal in the US at $500 billion per year, far greater than the market value of the coal burned. The cost of protecting or abandoning our coastal cities, of course, dwarfs these figures. The only reason any of these companies turn a profit is that they have been allowed to disguise their true costs.


#5

Thanks, Suspira. Also: Don't forget that it's an announcement for a policy change that's nine years away. I wonder if they really plan to do anything. Also: Don't forget: as the Gulf of Mexico devolved into foulness the media and government establishments largely pretended it wasn't happening with a "C'mon, it's not that bad." I don't know about you, but I'm not holding my breath for their fossil fuel epiphany and makeover.


#6

Forget the G7. The people have to kill the subsidies now. The world can't wait ten or more years.