Phase Out Fossil Subsidies by 2020, Climate Vulnerable Forum Demands
The G20 meeting in Hamburg in July must reach a decision to phase out fossil fuel subsidies by 2020, according to a communiqué this week from the Climate Vulnerable Forum, which represents the 49 countries that are most at risk due to the impacts of climate change.
“The G20, which represent the world’s largest economies, still pours hundreds of billions of dollars into the fossil fuel industry each year through tax breaks, direct finance, and other forms of support,” Climate Home reports. The Organisation for Economic Cooperation and Development (OECD) pegs its members’ annual fossil subsidies at US$160 to $200 billion; the International Monetary Fund placed the global total at $10 million per minute in a 2015 report.
Like this story? Subscribe to The Energy Mix and never miss an edition of our free e-digest.
The CVF declaration called “for market distorting fossil fuel production subsidies to be removed immediately and no later than 2020,” and diplomats emphasized the point during a side meeting with G20 representatives.
“Pulling resources from climate protection will create economic instability,” the declaration added, in what Climate Home calls a “thinly-veiled reference” to the Trump administration budget. “Investing in climate action is necessary and critical to inclusive development and economic growth”.
“For vulnerable countries, the 1.5°C limit is a matter of survival,” added Macaya Hayes, the Costa Rican ambassador to the United States. “It requires immediate and swift action by the global community, and above all, the major industrial powers.”