Experts more vociferous for cut in fossil fuel subsidies after IPCC Report
With IPCC report on contribution of fossil fuel combustion to rise of CO2 levels in atmosphere in mind, experts have called for a check on subsidies on these resources of energy.
''Fossil fuel subsidies are contributing to fiscal instability and undermining governments' efforts to combat serious economic and environmental challenges, such as climate change, and the transition to an inclusive green economy,'' a UN Report said.
The Intergovernmental Panel on Climate Change in its reports released recently has said that CO2 emissions from fossil fuel combustion and industrial processes accounted for approximately 78 per cent of the total increase in greenhouse gas emissions between 1970 and 2010.
The United Nations Environment Programme in collaboration with the IMF and some international institutes organised a two-day event to highlight the problem.
Experts participating in the deliberations said reducing or eliminating harmful fossil fuel subsidies - and properly pricing energy to account for environmental impacts -was one of the most promising ways governments can promote a transition to a greener economy, and even the playing field for investments in energy efficiency and renewable energy.
According to UNEP estimates, fossil fuel subsidies were in the range of 500 billion dollars globally.
When taking into account implicit subsidies from the failure to charge for pollution, climate change and other externalities, the IMF estimates the post-tax subsidy figure was closer to two trillion dollars worldwide - equivalent to about 2.9 per cent of the global GDP, or 8.5 per cent of government revenues.
(Posted on 29-04-2014)