Governments globally contributed an incredible $1.7 trillion in public funding to support fossil fuels in 2022, including subsidies, investments by state-owned companies (SOEs), and loans from public financial institutions.
This financial support greatly outstripped investment for renewable energy, grid integration, and battery storage, which totaled $486 billion, showing a substantial financing discrepancy. Despite increased financial support for renewable energy efforts, the International Institute for Sustainable Development (IISD) warns that the current level of assistance is insufficient to reach the critical aim of limiting global warming to 1.5 degrees Celsius. The overall Subsidies for fossil fuels, are expected to reach $1.3 trillion by 2022. However, the paper cautions that this figure may be higher because it is based on the IMF's definition of "explicit subsidies," which excludes certain policy actions.
The data finds that while SOEs would earn a record-high $350 billion in 2022, just 13% of SOEs in G20 countries will invest in renewable energy. The paper calls for global cooperation, urging that fossil fuel subsidies be phased out by 2025 for affluent countries and before 2030 for underdeveloped countries. It also shows the significance of carbon pricing and protecting disadvantaged communities during this transition.
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Technology is a useful servant, but a dangerous master, it was rightly said. Electronic devices have grown into an inevitable part of our daily lives.
