A report presented by the International Energy Agency (IEA) showed the growth of the subsidy for fossil fuels to an all-time high in 2022.
For many years the IEA has tracked fossil fuel subsidies around the World and this report shows that these doubled from the previous year to an all-time high of USD $1 trillion.
The agency explained in the report that fossil fuel prices were high and volatile in 2022, as there were factors the World faced such as the war in Ukraine and cuts in natural gas deliveries to Europe by Russia, however, consumers did not pay for this volatility.
“Our first estimates for 2022 show that subsidies for natural gas and electricity consumption more than doubled compared with 2021, while oil subsidies rose by around 85%. The subsidies are mainly concentrated in emerging markets and developing economies, and more than half were in fossil-fuel exporting countries”, the IEA explained.
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