Backs to the wall: Oil exporting countries double down on fossil fuel subsidies
Energy producers disconnect from their decarbonising customers by channelling Covid-19 stimulus funds into gas, oil and coal
Fossil fuel-exporting countries are losing touch with their customers. As major import-reliant economies in Europe and Asia funnel large pots of Covid-19 stimulus funding into cleaner sources of energy, the suppliers that they still depend upon for natural gas, oil and coal are doubling down on fossil fuel subsidies—in the hope of keeping their flagship industries alive during the pandemic.
The US, Canada, Indonesia, Russia and Mexico have together pledged more than USD 95 billion in unconditional support to carbon-heavy forms of energy, and just USD 29 billion to clean sources—some of which is conditional and therefore not guaranteed. The split is thus at least 76% in favour of fossil fuels.
By contrast, countries that are net energy importers—Germany, France, China, the UK, India, South Korea, Italy, Brazil, Turkey and Japan—have pledged at least USD 109 billion to clean energy sources, and around USD 73 billion to fossil fuels. This split is 60% in favour of renewables, electric vehi…