Eliminating $300 billion a year in global fossil fuel subsidies could cut greenhouse gas emissions by up to 6 percent, stimulate development of renewable energy sources, and improve economic growth, according to a report by the United Nations Environmental Programme (UNEP). The report said that fossil fuel subsidies often are imposed for political reasons and encourage wastefulness and economic inefficiencies. The biggest subsidies are in Russia, which spends $40 billion annually to subsidize natural gas for its citizens, and Iran, which spends $37 billion on various fossil fuel subsidies. Other countries with large fossil fuel subsidies include Saudi Arabia, China, India, Egypt, and Indonesia. A UNEP official said that these subsidies “stand in the way of more environmentally friendly technologies” and that many of the subsidies, such as those for liquefied petroleum gas in India, wind up benefiting higher-income people.
Ending Fuel Subsidies Is Good For Climate, Economy, U.N. Says
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