IEA Urges Global Leaders to Abandon Fossil Fuel Subsidies

On November 9, the International Energy Agency (IEA) released a report urging nations to eliminate fossil fuel subsidies to curb energy demand and cut carbon dioxide (CO2) emissions which cause climate change . The World Energy Outlook 2010 suggests that the lack of substantial action at last year’s UN climate negotiations in Copenhagen means that much tougher action will be needed after 2020, and an additional $1 trillion in spending will be needed by 2030, to hold temperature rise to 2°C. Eliminating fossil fuels subsidies would cut CO2 emissions 5.8 percent by 2020, according to the IEA. Fossil fuel subsidies were estimated at $312 billion in 2009, compared with $57 billion for renewable energy. "Getting the prices right, by eliminating fossil-fuel subsidies, is the single most effective measure to cut energy demand in countries where they persist, while bringing other immediate economic benefits," said Nabuo Tanaka, head of the IEA. “The message here is clear. We must act now to ensure that climate commitments are interpreted in the strongest way possible and that much stronger commitments are adopted and taken up after 2020, if not before. Otherwise, the 2°C goal could be out of reach for good."