When you are in a hole, stop digging – better still, start filling it in!
Drawing attention to this simple rule ECO – an NGO newsletter at COP 22 – draws attention to the opportunity for countries to reduce carbon emissions by phasing out carbon subsidies.
According to the IMF, in 2015 Australia ranks 5th in the list of G20 nations that subsidise fossil fuel use. As shown below, Australia gives out around $1,260 per capita in fossil fuel subsidies. This is a massive amount of money – around $5.6 billion per year.
Why would a nation or state subsidise green energy development AND, at the same time, subsidise fossil fuel use? Doesn’t one cancel out the other?
As nations seek cost-effective ways to reduce greenhouse gas emissions, surely, it makes economic sense to phase out fossil fuel subsidies. As the ECO newsletter suggests, it may be time to begin filling in Australia’s fossil fuel subsidy hole.
Post contributed by Prof Mike Young