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https://theconversation.com/fossil-fuels-are-still-subsidised-g20-could-push-for-the-funds-to-be-shifted-to-cleaner-energy-253869>
"As the G20 presiding nation, South Africa has an opportunity to champion
issues relevant to emerging economies. One of these issues is government
subsidisation of privately owned fossil fuel corporations.
Fossil fuel subsidies are paid when a government covers some of the costs
involved in producing fossil fuel energy. This can be done by increasing the
revenue received by oil, gas or coal companies, or lowering the price paid by
consumers for fossil fuel based energy.
Fossil fuel subsidies may include tax breaks, low interest loans, and
underpriced energy, all of which reduce costs for companies or consumers and
encourage more fossil fuel use.
Some subsidies are explicit: when fuel is sold below its real supply cost or
when producers receive financial support from the government. Others are
implicit: when fuel prices don’t reflect the full environmental and health
costs. For example, what the consumer pays for petrol excludes the cost of
impacts like pollution.
African countries such as South Africa, Ethiopia and Morocco all subsidise
fossil fuel companies. This can mean taking on debt, raising taxes, or cutting
public spending to free up money for the subsidies. This hits low-income
households, which rely on public services the most.
South Africa’s fossil fuel subsidies tripled from R39 billion (US$2.05 billion)
in 2018 to R118 billion (US$6.2 billion) in 2023. Fossil fuel subsidies can
occur for many reasons, such as making fuel more affordable for low-income
households, to promote economic competitiveness or to attract industry. Yet the
country wants to move away from fossil fuels, which have damaged local
communities and the environment.
I am an environmental scientist who researches emerging risks from fossil fuel
pollution and how industrial risks are governed. My research, as well as work
by others, shows that fossil fuel subsidies are associated with greater
greenhouse gas emissions. Now there’s an opportunity for South Africa to do
something about it at scale.
South Africa has set four key priorities for its 2025 G20 presidency. These
are: strengthening disaster resilience; keeping debt levels down; mobilising
the finance needed to move to renewable energy; and setting up green
industries.
South Africa, as G20 president, should push for fossil fuel subsidies to be
shifted into funding cleaner energy and climate adaptation.
This should be paired with strong support for clean energy investments and
measures to retrain fossil fuel workers for sustainable, green economy jobs."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
