The world’s main economies have sharply increased support for the production and consumption of coal, oil and natural gas, according to an analysis released this Monday (29) by the Organization for Economic Cooperation and Development (OECD) and the International Energy Agency. (AIE, its acronym in English).
This comes at a time when many countries struggle to honor past commitments to eliminate fossil fuel subsidies and protect citizens from rising energy prices.
New OECD and IEA data show that overall government support for fossil fuels in 51 countries worldwide has nearly doubled to $697.2 billion in 2021 from $362.4 billion in 2020, as Energy prices have increased with the recovery of the global economy. In addition, consumption subsidies are expected to increase further in 2022 due to rising fuel prices and energy use.
“Russia’s war against Ukraine has caused sharp increases in energy prices and undermined energy security. Significant increases in fossil fuel subsidies encourage overconsumption, although they do not necessarily reach low-income households,” said OECD Secretary-General Mathias Cormann.
“We need to adopt measures that protect consumers from the extreme impacts of market changes and geopolitical forces in a way that helps us keep on the path of carbon neutrality, as well as energy security and affordability”, concludes the secretary.
Source: CNN Brasil
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