Home

Translate

Open Translation
DUBAI: Governments in 82 economies subsidised fossil fuels at a cost of US1.5 trillion in 2022 – up from US$769.5 billion the previous year.

Data from the OECD and IEA indicate the offset was due to exceptionally high energy prices prompted “in part” by Russia’s invasion of Ukraine.

The OECD said direct transfers and tax expenditures totalled US$427.9 billion while the IEA noted petroleum, electricity and natural gas sold below market prices added US$1.126 trillion to the total.

Governments directed 81 percent of their fiscal support at companies and households while fossil fuel producers received 16 percent of the total or US$240 billion.

The current OECD-IEA combined estimates cover 82 major economies, spanning the OECD, G20 and 33 other major energy producing and consuming economies representing around 85 percent of the world’s total energy supply.

The IEA said consumption subsidies increased to US$1.1 trillion in 2022, a jump of 116 percent from 2021, and included a US$36.1 billion support for coal production and consumption, a 60 percent increase since 2013.

The OECD and IEA reiterated their call for phasing out – not “down” - of inefficient fossil fuel support and redirection of public funding toward the development of low-carbon alternatives, alongside improvements in energy security and energy efficiency.

Meanwhile in a letter to Sultan Al Jaber, the current president of COP 28, over 50 former presidents, prime ministers and a UN secretary general have called on the world’s leading petrostates – which banked US$4 trillion revenues last year from the high price of oil – to build up a US$1trillion climate fund for the Global South help poorer nations mitigate against and adapt to the effects of climate change.

“This is 20 times the entire global aid budget, over 30 times the budgets of all multilateral development banks combined, and 40 times the US$100 billion a year promised back in 2009 for climate mitigation and adaptation in poor countries — still not yet delivered," they said.

“In the space of just a year, a US$2.5 trillion of windfall profits were gained by the oil producer states and their national and other private companies that they have done nothing to earn,” declared the 85 signatories that included former UN secretary general Ban Ki-Moon and former prime ministers and presidents of New Zealand, Chile, Pakistan, Malawi, Costa Rica, the Netherlands, Mexico, Spain, Canada, Mauritius, Senegal, Greece.

Calling on the UAE, Saudi Arabia, Qatar and Norway to kickstart the fund with a collective US$25 billion - just over one percent of their 2022 oil and gas windfall revenues - the leaders continued: “With Sheikh Al Jaber also head of Abu Dhabi National Oil Company (ADNOC), there is an opportunity for the Gulf states and Norway, another main beneficiary of high prices, to lead the way in bridging the financing gap faced by low and middle income countries as they attempt to mitigate and adapt to climate change.”

Noting the biggest beneficiaries had been the major petrostates - increasing their export earnings to total US$973 billion dollars in 2022, up from US$381 billion in the previous 12 months - they said UAE earnings rose from US$63 billion to US$98 billion; Qatar’s increased from US$53 billion to US$86 billion; Kuwait’s from US$63 billion to $88 billion; Norway’s from US$87 billion to US$174 billion, and Saudi Arabia export earnings went up from US$190 billion to US$311 billion.

Coincidentally, COP28 opened with the launch of a loss and damage fund for the world’s poorest and most vulnerable countries pay for the irreversible impacts of climate disaster including sea level rise, ocean acidification and melting glaciers.

The UAE and Germany both pledged US$100 million with a further US$75 million from Britain, US$24.5 million from the U.S. and US$10 million from Japan.

Speaking at the opening, UN Climate Change executive secretary Simon Stiell said: “If we do not signal the terminal decline of the fossil fuel era as we know it, we welcome our own terminal decline. And we choose to pay with people’s lives.”

Acknowledging the debt to young people and civil society for “having pushed us this far” and noting they are looking at COP 28 delegates “to take responsibility for speeding things up”, he pointed out that every registrant was publicly listed: “The whole world knows who’s here. They will hold us to account on what we do, or do not do… To further ensure accountability, I am committing the [United Nations Framework Convention on Climate Change] to track all announcements made and initiatives launched. So that long after the cameras have gone, we can ensure our promises continue to serve the planet.” https://gordonandsarahbrown.com
Story Type: News

Vote for my Story

Our Rating: 9% - 2 votes

1000 Characters left


Latest News

June 07, 2024
People Editor

Fossil fuel investors gain US$114 billion from secret courts

LONDON, UK: According to new data, a secretive arbitration court set up after the collapse of the Soviet Union is now being used by corporations to award themselves billions in taxpayer funds. The Investor State Dispute Settlement (ISDS) is a mechanism…
May 25, 2024
Transportation Editor

European Commission sets deadline for airline greenwashing claims

BRUSSELS: The European Commission has asked 20 European airlines to respond to greenwashing charges by the European Consumer Association (BEUC) in relation to their marketing of Sustainable Aviation Fuel. Alerted by BEUC in 2023, the Commission and the…
May 23, 2024
Energy Editor

U.S. corporate collusion ignores climate chaos for profit

WASHINGTON, DC: A report by advocacy non-profit group Oil Change International (OCI) says Chevron, ExxonMobil, Shell, TotalEnergies, BP, Eni, Equinor, and ConocoPhillips have no plans to meet the Paris Agreement goal of limiting global warming to 1.5°C. All…
April 18, 2024
Biodiversity Editor

Humans face 19 percent drop in income from climate impact.

POTSDAM, Germany: According to scientists at the Potsdam Institute for Climate Impact Research (PIK), climate change is going to cost the world economy US$38 trillion a year annually to 2050. Based on empirical data from more than 1,600 regions worldwide over…
April 09, 2024
People Editor

Top European court says ignoring climate impact violates human rights

STRASBOURG: The European Court of Human Rights has, for the first time in law, acknowledged government failure to implement sufficient measures to combat climate change. A case brought by the Swiss Climate Seniors Association (SCSA) claimed Swiss authorities…
April 05, 2024
Transportation Editor

Watchdog claims box carriers profit from EU carbon emissions charge

BRUSSELS: Following the introduction of the world’s first carbon market for maritime shipping in January, a study by Transport & Environment (T&E) suggests container shipping companies are making significant profits from charging customers a surcharge to…
April 05, 2024
Emissions Editor

No change by fossil fuel producers since Paris Agreement

WASHINGTON, DC: According to new analysis, 80 percent of global CO2 emissions produced since the Paris Agreement have been the responsibility of 57 corporate and state entities. Countries and their state-owned companies account for 75 percent of the total…
March 19, 2024
Food Editor

Still butchering the planet

LONDON, UK: A report by environmental organisation Feedback says the world’s 55 largest industrial livestock companies have received over US$615 billion in financing since the Paris Agreement was signed in 2016. As of March 2023, it included US$287.8 billion…
February 28, 2024
People Editor

83 million Americans breathe unhealthy air

BROOKLYN, NY/SAN DIEGO, CA: A report from research and technology company First Street finds 83 million Americans are exposed annually to air quality thresholds categorized as “unhealthy” by the U.S. Environmental Protection Agency’s (EPA) Air Quality Index.…
February 22, 2024
People Editor

Nearly 50 million Americans deny climate change

ANN ARBOR, MI/CHICAGO, IL: A study by the University of Michigan School for Environment and Sustainability (SEAS) has concluded 12-26 percent of Americans, depending on location, deny the reality of climate change. The researchers used Twitter (now X) data…
February 21, 2024
Biodiversity Editor

UAE renewables deal needs US$8 trillion

DUBAI/BERLIN: Abu Dhabi National Oil Company CEO and COP28 president Sultan Al-Jaber says he will work with the presidents-designate of COP29 (Azerbaijan) and COP30 (Brazil) to ensure the tripling of investment in renewables agreed in Dubai last December.…
February 19, 2024
People Editor

US$281 billion war profit in two years

LONDON: Five fossil fuel majors have made over US$281 billion net profit since Russia’s invasion of Ukraine two years ago. According to a new analysis by Global Witness, Shell, BP, Chevron, ExxonMobil and TotalEnergies paid US$200 billion to shareholders in…

We are using cookies

By continuing you are agreeing to our use of cookies

I understand