Removing worldwide fossil fuel subsidies worth $1.9tr would have "major gains for economic growth and the environment"
the International monetary fund
(IMF) said yesterday.
A study by the international body estimates support for products from coal to petrol equate to around 2.5 per cent of global GDP and account for roughly eight per cent of all government revenues. It shows that 20 countries maintain pre-tax energy subsidies that exceed five per cent of their GDP.
"For some countries the fiscal weight of energy subsidies is growing so large that budget deficits are becoming unmanageable and threaten the stability of the economy,"
said David Lipton, IMF first deputy managing director, in a speech to mark the launch of the paper
in Washington D.C. yesterday.
"Subsidies have adverse effects on public finances, economic growth, equity and the environment.
Removing energy subsidies can also help prolong the availability of non-renewable energy resources and strengthen incentives for research and development in energy-saving and alternative technologies."
Action - Use $1.9 trillion to develop the global economy, society and environment - not prop up the profit making fossil fuel companies. Thats not complicated.