PLEA Network

13 May 2019, Renew Economy, Global fossil fuel subsidies reach $5.2 trillion, and $29 billion in Australia. New analysis commissioned by the International Monetary Fund has shown that global fossil fuel subsidies continue to grow, despite the growing urgency of the need to decarbonise the global economy. The working paper prepared by the IMF Fiscal Affairs Department estimated that, in 2017, global fossil fuel subsidies grew to $5.2 trillion, representing 6.5 per cent of combined global GDP. China leads all countries in the level of subsidies provided to fossil fuels, which the IMF report estimated to total $1.4 trillion in 2015. The United States followed with $649 billion in subsidies, Russia with $551 billion and the EU with $289 billion. The IMF estimates that annual energy subsidies in Australia total $29 billion, representing 2.3 per cent of Australian GDP. On a per capita basis, Australian fossil fuel subsidies amount to $1,198 per person. Australia ranked below most countries for mortality rate from pollution related illnesses, with the IMF attributing 2.6 deaths per 1,000 in Australia to local air pollution associated with fossil fuels. This is less than half the rate observed in China (5.3 deaths per 1,000) and significantly below Russia (10.0 deaths per 1,000) and the Ukraine (16.0 deaths per 1,000), where little by way of regulation exists to protect people from air pollution. The IMF found that the removal of fossil fuel subsidies would have significant economic benefits, including improved budget bottom-lines for governments. The net benefits of eliminating fossil fuel subsidies would amount to 1.7 per cent of global GDP. Read more here