G20 Leaders Fail to End Fossil Fuel Subsidies, Again
Lack of action flies in the face of warnings from major insurers, business analysts
A version of this article appeared in Oil Change International
At the G20 summit, which ended in China yesterday, world leaders again failed to set a deadline to end fossil fuel subsidies, seven years after they first committed to ending them. Even as G20 governments move to ratify the Paris Agreement on climate change, they’re adding fuel to the fire by dumping $444 billion of our money into polluting fossil fuel companies every year, undermining the spirit and the letter of the global climate deal.
Photo by Ron Mader
Each dollar our governments waste on fossil fuel subsidies pushes us closer to climate disaster, and makes the transition to clean energy more difficult by locking us into fossil fuel dependency. What’s more, we’re throwing away money we could use to change the course of history: development experts say that ending regressive fossil fuel subsidies and repurposing them could end as much as 70 percent of extreme poverty worldwide.
Over the past few months, the voices calling on G20 leaders to end fossil fuel subsidies have grown loud enough to rattle the halls of power. In June, G7 leaders urged all countries to phase out fossil fuel subsidies no later than 2025, while more than 200 civil society groups from around the world released a statement calling for an even earlier deadline of 2020 for the world’s largest economies – the G20 countries.
It’s not just the usual suspects calling for change: last week, major insurers with $1.2 trillion in assets under management, alongside the UK’s professional body for actuaries, released a statement calling on G20 leaders to commit to phasing out fossil fuel subsidies by 2020. Actuaries and insurance companies make a living assessing risk. When they say that fossil fuel subsidies are so risky they threaten our very existence, G20 leaders need to listen. Adding to the chorus, the Bloomberg View editorial board recently called fossil fuel subsidies “the world’s dumbest policy.” We agree.
But now that G20 leaders have again failed to act on fossil fuel subsidies in China, what can we do to make sure they finally wake up and set a 2020 phase-out deadline? Now is the time to push Germany — the next G20 host — to put axing fossil fuel subsidies at the top of the agenda. You can help by adding your voice to our campaign to end fossil fuel subsidies. German Chancellor Angela Merkel wants to maintain her reputation as a climate champion through next year’s G20 presidency, and if we apply enough pressure, she’ll have to lead the way in securing a strong commitment from world leaders to end all fossil fuel subsidies by 2020.
The China G20 is a disappointment, but Germany is our chance to notch a big win against fossil fuel subsidies. Help push G20 leaders to finally #StopFundingFossils.