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Winds of Change Newsletter, December 2011 See sidebar for table of contents
Another Type of Bail-Out: Fossil Fuel Subsidies
Foolish, Wasteful
In early October, the news service Reuters reported
that the International Energy Agency is warning that global subsidies
for fossil fuel consumption are set to reach $660 billion in 2020 unless
reforms are passed to effectively eliminate this form of state aid.
"Governments and taxpayers spent about half a trillion
dollars last year supporting the production and consumption of fossil
fuels," the IEA said at a press conference.
Reuters noted that, "Leaders of the Group of 20 (G20)
major economies committed in Pittsburgh in 2009 to phase out, over the
medium-term, inefficient fossil fuel subsidies that encourage wasteful
consumption."
Organization for Economic Co-operation and Development
Secretary General Angel Gurria said, "As they (nations) look for policy
responses to the worst economic crisis of our lifetimes, phasing out
subsidies is an obvious way to help governments meet their economic,
environmental and social goals."
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