Study: Fossil fuel subsidies are 12 times support for renewables
From an article by Alex Morales on Bloomberg.com:
Global subsidies for fossil fuels dwarf support given to renewable energy sources such as wind and solar power and biofuels, Bloomberg New Energy Finance said.
Governments last year gave $43 billion to $46 billion of support to renewable energy through tax credits, guaranteed electricity prices known as feed-in tariffs and alternative energy credits, the London-based research group said today in a statement. That compares with the $557 billion that the International Energy Agency last month said was spent to subsidize fossil fuels in 2008.
“One of the reasons the clean energy sector is starved of funding is because mainstream investors worry that renewable energy only works with direct government support,” said Michael Liebreich, chief executive of New Energy Finance. “This analysis shows that the global direct subsidy for fossil fuels is around ten times the subsidy for renewables.”
Countries from the U.S. and Germany to Brazil and China are trying to boost power derived from crops, the wind and the sun in order to lower emissions of greenhouse gases while increasing the security of energy supplies. The Group of 20 nations a month ago renewed a commitment to phase out fossil fuel subsidies “over the medium term.” No target date was set.