Even as European countries rolled out a suite of climate-friendly policies over the past year, they also provided an unprecedented volume of subsidies for continued fossil fuel use: The United Kingdom slashed its tax on gasoline and sent out government payments to help people heat their homes with natural gas. Greece reimbursed millions of citizens for high electricity bills, helping them keep up with the rising cost of gas and coal. Germany capped gas and electricity prices and bailed out a massive fossil-fuel-powered utility.
Global fossil-fuel subsidies doubled last year to $1.1 trillion, by far the highest number ever recorded, according to a new report from the International Energy Agency, or IEA. The surge in financial support for oil and gas was largely a response to the energy crisis caused by the war in Ukraine, which caused many countries to abruptly reconsider their dependence on Russian fossil fuel reserves. Experts say the subsidies could be difficult to unwind, if consumers become accustomed to having a cushion against high prices.
Nevertheless, 2022... Read more
