Imf Fossil Fuel Subsidies Data 2023 Update

This paper provides a comprehensive global, regional, and country-level update of: (i) efficient fossil fuel prices to reflect supply and environmental costs; and (ii) subsidies implied by charging below efficient fuel prices. Globally, fossil fuel subsidies were $7 trillion in 2022 or 7.1 percent of GDP. Explicit subsidies (undercharging for supply costs) have more than doubled since 2020 but are still only 18 percent of the total subsidy, while nearly 60 percent is due to undercharging for global warming and local air pollution. Differences between efficient prices and retail fuel prices are large and pervasive, for example, 80 percent of global coal consumption was priced at below half of its efficient level in 2022. Full fossil fuel price reform would reduce global carbon dioxide emissions to an estimated 43 percent below baseline levels in 2030 (in line with keeping global warming to 1.5-2oC), while raising revenues worth 3.6 percent of global GDP and preventing 1.6 million local air pollution deaths per year. Accompanying spreadsheets provide detailed results for 170 countries.

This paper updates estimates of fossil fuel subsidies, defined as fuel consumption times the gap between existing and efficient prices (i.e., prices warranted by supply costs, environmental costs, and revenue considerations), for 191 countries. Globally, subsidies remained large at $4.7 trillion (6.3 percent of global GDP) in 2015 and are projected at $5.2 trillion (6.5 percent of GDP) in 2017. The largest subsidizers in 2015 were China ($1.4 trillion), United States ($649 billion), Russia ($551 billion), European Union ($289 billion), and India ($209 billion). About three quarters of global subsidies are due to domestic factors—energy pricing reform thus remains largely in countries’ own national interest—while coal and petroleum together account for 85 percent of global subsidies. Efficient fossil fuel pricing in 2015 would have lowered global carbon emissions by 28 percent and fossil fuel air pollution deaths by 46 percent, and increased government revenue by 3.8 percent of GDP.

This paper provides a comprehensive global, regional, and country-level update of: (i) efficient fossil fuel prices to reflect their full private and social costs; and (ii) subsidies implied by mispricing fuels. The methodology improves over previous IMF analyses through more sophisticated estimation of costs and impacts of reform. Globally, fossil fuel subsidies were $5.9 trillion in 2020 or about 6.8 percent of GDP, and are expected to rise to 7.4 percent of GDP in 2025. Just 8 percent of the 2020 subsidy reflects undercharging for supply costs (explicit subsidies) and 92 percent for undercharging for environmental costs and foregone consumption taxes (implicit subsidies). Efficient fuel pricing in 2025 would reduce global carbon dioxide emissions 36 percent below baseline levels, which is in line with keeping global warming to 1.5 degrees, while raising revenues worth 3.8 percent of global GDP and preventing 0.9 million local air pollution deaths. Accompanying spreadsheets provide detailed results for 191 countries.

Energy subsidies are aimed at protecting consumers, however, subsidies aggravate fiscal imbalances, crowd out priority public spending, and depress private investment, including in the energy sector. This book provides the most comprehensive estimates of energy subsidies currently available for 176 countries and an analysis of “how to do” energy subsidy reform, drawing on insights from 22 country case studies undertaken by the IMF staff and analyses carried out by other institutions.

What will the climate crisis mean for Australia? What is the price of our inertia? Australia is in peril. Do we truly grasp the impact of a warming planet – in particular, what it will mean for our sunburnt country? As temperatures rise, the climates of our capital cities will change. The sea will rise, and we will see increased fire and drought. In this powerful essay, Joëlle Gergis, a leading climate scientist, depicts the likely future in vivid and credible detail. Working from the science, she discusses the world's and Australia's efforts to combat climate change. She outlines how far Australia is from keeping its promises to cut emissions. She takes aim at false solutions and the folly of "adaptation" rather than curbing fossil fuel use. This is an essay about government paralysis and what is at stake for all of us. It's about getting real, in the face of an unprecedented threat. "How many disasters does it take to wake people up to the fact that Australia's climate is becoming more extreme, with today's destruction set to be dwarfed by things to come? Do people realise that adapting to climate change won't be possible in some parts of the country?" Joëlle Gergis, Highway to Hell This essay contains correspondence relating to Quarterly Essay 93 Bad Cop from Niki Savva, Thomas Mayo, Lachlan Harris, Mark Kenny, Robert Wood, Paul Strangio, and Lech Blaine

Discusses how G20, IMF and OECD have addressed climate finance and fossil fuel subsidies, including consequences for climate politics.

The Language of Climate Politics offers readers new ways to talk about the climate crisis that will help get fossil fuels out of our economy and save our planet. It's an analysis of the current discourse of American climate politics, but also a critical history of the terms that most directly influence the way not just conservatives but centrists on both sides of the political divide think and talk about climate change. In showing how those terms lead to mistaken beliefs about climate change and its solutions, the book equips readers with a new vocabulary that will enable them to neutralize climate propaganda and fight more effectively for a livable future.

This paper provides a comprehensive, updated picture of energy subsidies at the global and regional levels. It focuses on the broad notion of post-tax energy subsidies, which arise when consumer prices are below supply costs plus a tax to reflect environmental damage and an additional tax applied to all consumption goods to raise government revenues. Post-tax energy subsidies are dramatically higher than previously estimated, and are projected to remain high. These subsidies primarily reflect under-pricing from a domestic (rather than global) perspective, so even unilateral price reform is in countries’ own interests. The potential fiscal, environmental and welfare impacts of energy subsidy reform are substantial.