Want to cut global emissions by 10%? Stop fossil-fuel subsidies.
According to the International Energy Agency (IEA), countries spent a record-breaking $1 trillion on fossil fuel subsidies in 2022, which is more than what is spent on climate adaptation and mitigation. The subsidies come in two forms: production subsidies, which are given to fossil fuel companies to increase production, and consumer subsidies, which lower the cost of fossil fuels for the wider population. Cutting such subsidies would decrease both the demand and supply of fossil fuels, and thus planet-warming emissions as well. The IEA has warned that not all of the expenditures are necessarily factored into their 2022 data on fossil fuel subsidies, as consumers paid rates close to the market value.