Investors and Insurers Call On G-20 To Phase Out Fossil Fuel SubsidiesGina-Marie Cheeseman on Wednesday, Feb 22nd, 2017
Wednesday, Feb 22nd, 2017 Climate & Environment
Investors and insurers with over $2.8 trillion in assets under management are calling on the G-20 countries to phase out fossil fuel subsidies by 2020. The value of global fossil fuel subsidies totaled $493 billion in 2014, according to World Energy Outlook. And cutting that off could help reduce climate and accelerate green investment, stakeholders say.
G-20 governments must “lead in phasing out subsidies and public finance for fossil fuels – to accelerate green investment and reduce climate risk,” the investors and insurers said in a statement. They urged governments to create a deadline to phase out fossil fuel subsidies and public finance for fossil fuels at the G-20 Summit in Hamburg, Germany, this summer.
In their statement, the investors and insurers said subsidies and public finance that support the production and use of fossil fuels are a “key concern to the finance sector.” They went on to cite the pitfalls of such subsidies:
- Subsidies increase the risk of stranded fossil fuel assets.
- They decrease the competitiveness of key industries, including low-carbon businesses.
- They negate carbon price signals.
- They create a significant burden on government budgets.
- They perpetuate income inequality that benefits the richest consumers, and do not meet the energy needs of those without energy access.
- And they damage public health by increasing air pollution.