At over $400bn in 2018, global fossil fuel consumption subsidies are more than double those for renewables. That makes sense while governments worldwide use energy subsidies to help poor consumers, and clean energy still makes up a smaller proportion of the global energy mix. But it makes the transition harder: cheaper fossil energy means more is consumed, and it’ll take longer for clean energy to compete it away. The IEA’s WEO Energy Analysts Wataru Matsumura and Zakia Adam run through the landscape, including the evolving subsidy regimes of different nations and the effect of oil price volatility. They conclude that, whatever pathway is taken, phasing out fossil fuel consumption subsidies must be an essential part of energy policy.
Energy Post 20th June 2019 read more »