G20 Leaders Agree To Phase Out Inefficient Fossil Fuel Subsidies

by Zachary Shahan – Special to JBS News

Russian President Vladimir Putin at this month's G-20 summit. Image Credit: Government of Russia
Russian President Vladimir Putin at this month’s G-20 summit.Image Credit: Government of Russia

Earlier this month, G20 leaders meeting in St Petersburg, Russia decided to phase out the use of HFCs. This got a lot of attention (at least among green media), and rightfully so. However, another big decision made in St Petersburg seems to have bypassed most radars. The G20 leaders also agreed to phase out “inefficient” fossil fuel subsidies. Such a move would cut approximately $500 billion in annual governmental expenditures while also reducing greenhouse gas emissions (compared to business-as-usual emission projections) 10% by 2050.

Environment News Service, on the day of the meeting (September 20), wrote:

All the G-20 leaders agreed to phase out inefficient fossil fuel subsidies. Building on the commitment they made at the Pittsburgh G-20 Summit in 2009 to phase out these subsides, G-20 Leaders today agreed on the methodology for a new peer-review process of fossil fuel subsidies, an important step in combating climate change.

The International Energy Agency estimates that eliminating subsidies – which amount to more than $500 billion annually – would lead to a 10 percent reduction in greenhouse gas emissions below business-as-usual by 2050.

As part of the St. Petersburg Declaration released today at the close of the summit, the G-20 leaders stated;

“We reaffirm our commitment to rationalise and phase out inefficient fossil fuel subsidies that encourage wasteful consumption over the medium term while being conscious of necessity to provide targeted support for the poorest.”

“We welcome the development of a methodology for a voluntary peer review process and the initiation of country-owned peer reviews and we encourage broad voluntary participation in reviews as a valuable means of enhanced transparency and accountability. We ask Finance Ministers to report back by the next Summit on outcomes from the first rounds of voluntary peer reviews. Recognising the importance of providing those in need with essential energy services, we ask Finance Ministers to consider, in conjunction with the relevant international institutions, policy options for designing transitional policies including strengthening social safety nets to ensure access for the most vulnerable.”

Now, personally, I’d consider all fossil fuel subsidies to be inefficient, but I’m guessing that G20 leaders have some fossil fuel subsidies in mind that they would consider efficient. Otherwise, why the dubious language?

Also, I imagine they aren’t going to include externalities – even though they should — and I’m not seeing a timeline for the phase-out. I assume that isn’t yet set.

We’ll see what comes of all this, but it looks like a step in the right direction.

h/t Green Car Reports

Repost.Us - Republish This Article

This article, G20 Leaders Agree To Phase Out “Inefficient” Fossil Fuel Subsidies, is syndicated from Clean Technica and is posted here with permission.

About the Author

Zachary Shahan is the director of CleanTechnica, the most popular cleantech-focused website in the world, and Planetsave, a world-leading green and science news site. He has been covering green news of various sorts since 2008, and he has been especially focused on solar energy, electric vehicles, and wind energy for the past four years or so. Aside from his work on CleanTechnica and Planetsave, he’s the Network Manager for their parent organization – Important Media – and he’s the Owner/Founder of Solar Love, EV Obsession, and Bikocity. To connect with Zach on some of your favorite social networks, go to ZacharyShahan.com and click on the relevant buttons.

Related Posts

pre-tax-subsidies-imf-e1364565662672

International Monetary Fund: US Is #1 Fossil Fuel Subsidizer

January New Energy Capacity All Renewable in US

Renewable Energy Adoption — Not Fast Enough

Fossil fuel burning power plant via Shutterstock

Fossil Fuel Subsidies Are Public Enemy Number One, Says IEA

View the whole "What Would Jefferson Do?" report for more details.

Oil Subsidies & Natural Gas Subsidies — Subsidies For The Big Boys (Not For Society)

America’s Updated Energy Strategy

by John Brian Shannon

President Obama visited the Argonne National Laboratory today in Argonne, Illinois, to give a major speech on the future of American energy. A new, USD $2 billion dollar program called the energy security trust was announced which gives focus to the administration’s plans for more renewable energy and proposes lower subsidies for fossil fuels.

Much of the resulting policy statement is based upon information supplied to the administration by the nonpartisan, Securing America’s Future Energy (SAFE) which represents senior business and former military leaders on both ends of the American political spectrum.

Here are the main points of the energy security trust – more detailed information is available by clicking here and here. And you can read the transcript of the President’s speech today in Argonne, Illinois, as compiled by the Chicago Sun-Times here.

By 2020, the President and Energy Secretary Steven Chu want the US;

  • To double the present level of U.S. renewable electricity generation
  • To double American energy productivity (by 2030)
  • To cut energy waste in the U.S. by half over the next twenty years
  • To invest in technology promoting energy efficiency & reduced waste
  • To cut net oil imports in half by the end of the decade
  • To enable safer production & cleaner electricity from natural gas
  • To promote safe & responsible oil and natural gas development
  • To assist the Nation’s truck fleets to adopt natural gas & alternative fuels
  • To improve energy efficiency through the Better Buildings Challenge program
  • To help U.S. states cut energy waste, improve efficiency & modernize grids
  • To streamline Interior Department regulations for faster project permitting
  • To work with the G20 & other fora to phase-out fossil fuel subsidies worldwide
  • To work with the IEA & others to strengthen energy security
  • To promote energy efficiency & development & deployment of clean energy via Clean Energy Ministerial & other international fora
  • To promote safe & secure nuclear power in nations pursuing nuclear energy
  • To design a responsible nuclear waste strategy for the U.S.

As the President continues to pursue his ‘all-of-the-above’ energy strategy, it should be noted that significant progress has been made. As President Obama stated in his speech today,

“We produce more oil than we have in 15 years. We import less oil than we have in 20 years. We’ve doubled the amount of renewable energy that we generate from sources like wind and solar. We have tens of thousands of good jobs to show for it.

We’re producing more natural gas than we ever have before with hundreds of thousands of good jobs to show for it. We supported the first new nuclear power plant in America since the 1970’s. And we’re sending less carbon pollution into the environment than we have in nearly 20 years. So we’re making real progress across the board.” – President Barack Obama

All of this is adding up to huge changes in the American energy sector and for the producers, consumers and investors of energy, the energy map in 2020 will bear scant resemblance to our present-day energy model. And that means that seven years from now, the air in and around large U.S. cities will be the cleaner for it.

Related articles
JOHN BRIAN SHANNON

To follow John Brian Shannon on social media – place a check-mark beside your choice of Facebook, Twitter or LinkedIn: FullyFollowMe/johnbrianshannon