Global fossil fuel subsidies amount to USD 557 billion
8 June 2010
Global fossil fuel consumption subsidies in 2008 were much higher than previously estimated and totalled USD557 billion, according to IEA analysis feeding into a joint report by the IEA, OECD, World Bank and OPEC to the Group of 20 nations.
Thirty-seven countries were identified that offer subsidies to fossil fuels in consumption, with the top five being Iran, Russia, Saudi Arabia, India and China.
Phasing out inefficient fossil fuel subsidies would enhance energy efficiency, promote energy security, and play a major role in the fight against climate change. Yet phase-out policies in developing countries must be carefully designed so as not to restrict access to essential energy services.
The IEA subsidies analysis is part of the Agency’s ongoing work for the upcoming World Energy Outlook 2010.