Rising fossil fuel support poses a threat to building a healthier and climate-safe future
Total fossil fuel support rose by 10% year-on-year to USD 178 billion in 2019
Support for fossil fuels in the OECD and selected partner economies is on the rise again after five years of steady declines
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Lower fuel prices helped reduce global fossil-fuel consumption subsidies
Government support for the production and consumption of fossil fuels totalled USD 478 billion in 2019, according to OECD and IEA analysis of 77 economies. The analysis uses a combined OECD-IEA estimate of support for fossil fuels that merges OECD Inventory estimates and IEA price-gap estimates.
The combined OECD-IEA estimate shows an 18% decline from USD 582 billion in 2018 that is due mostly to the mechanical effect of the drop in global oil prices on consumption subsidies. Lower oil prices meant governments spent less subsidising energy costs for end-users. It does not reflect real efforts to phase out inefficient subsidies. The plunge in oil prices this year offers a clear chance to wean economies off this support.
Further information: IEA Energy subsidies - Tracking the impact of fossil-fuel subsidies