Fossil fuel subsidies on the rise

Fossil fuel subsidies on the rise
Despite the climate crisis and extreme weather this year, governments are continuing to pay out fossile fuel subsidies that are making the problems worse. / Statista
By Martin Armstrong for Statista October 12, 2023

According to calculations by the International Monetary Fund (IMF), $7 trillion were spent on direct and indirect subsidies for fossil fuels in 2022. The war in Ukraine and the resulting rise in energy prices are partly responsible for the significant increase in the previous year, reports Statista.

But even before that, the trend was already upwards, as this infographic illustrates. Subsidies are also likely to increase in the future. According to analysts, the reason for this is the economic growth of the Global South and the resulting increase in the consumption of coal, oil and gas.

Government support for fossil fuels is equivalent to just over seven% of the planet's economic output. A direct comparison with another important government budget item, for example, shows how enormous this sum is. Education spending by all countries combined accounts for 4.3% of global gross domestic product.

Countering fossil fuel subsidies, according to the IMF, would not only offer a chance to put humanity back on track to meet its climate goals, but could also prevent 1.6mn premature deaths per year and increase government revenues by $4.4 trillion.

Infographic: Fossil Fuel Subsidies on the Rise | Statista You will find more infographics at Statista

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BOFIT: Russian inflationary pressures on the rise
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Putin's trust rating holds steady at 78.5% in latest poll
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Dragon Capital halves Ukraine’s 2024 GDP forecast to 4% in anticipation of another year of war
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Czech industry increased by 1.9% y/y in October
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