Originally posted on CleanTechnica
Governments of the G20 organisation are contributing approximately $88 billion towards the exploration of fossil fuels each year, despite the numerous cases against such a move, and despite numerous pledges to eliminate fossil fuel subsidies. This, according to a new report conducted by the Overseas Development Institute and Oil Change International.
The report is the first to contain a detailed analysis of fossil fuel exploration subsidies by all of the G20 nations, and comes to one unmistakable conclusion: with the rising costs necessary to acquire hard-to-reach reserves in tandem with falling coal and oil prices, government subsidies are “propping up fuel exploration which would otherwise be deemed uneconomic.”
“Despite the widespread perception that renewables are costly, our research reveals that finding new fossil fuel reserves is costing nearly $88 billion in exploration subsidies across the G20,” said Shelagh Whitley, of the Overseas Development Institute (ODI). “Scrapping these subsidies would begin to create a level playing field between renewables and fossil fuel energy.”
“Five years ago, G20 governments pledged to both phase out fossil fuel subsidies and take action to limit climate change,” added Oil Change International’s Director Stephen Kretzmann. “Immediately ending exploration subsidies is the clearest next step on both fronts.”
Hit the jump to take a look at the key findings from the report, as well as what the research has to say about Australia, the United Kingdom, and the United States.