Subsidies encouraging fossil-fuel consumption
Getting rid of subsidies is tricky due to unrest and political concerns
At the UN-backed global climate talks in Copenhagen in 2009, governments agreed to phase out fossil-fuel subsidies, including those on transport fuels, by 2020. Each year since then, the hand-outs have only grown. The trend shows little sign of reversing, as governments try to limit the impact of high oil prices on their citizens' pockets. Transport fuel subsidies cost governments money and put a brake on clean energy initiatives by encouraging greater fossil fuel use, so there are strong arguments in favour of eliminating or reducing them, allowing the market to decide on the right pricing level for fuels. Few politicians say subsidies are a good thing. But when push comes to shove, many

Also in this section
14 May 2025
Deal with Calpine shows oil and gas major ExxonMobil has no intention of curbing its CCS ambitions, despite US policy risks and broader scepticism over the energy transition
13 May 2025
Volatile tariffs add new risks for a sector already struggling to achieve economies of scale
30 April 2025
State administrations are using a flawed metric to justify green energy projects
29 April 2025
Spain’s unprecedented blackout highlighted the risk for green hydrogen producers with exposure to Europe’s creaking power grids