No More Fuel Subsidies

The world’s largest economies collectively pledged to phase out subsidies for oil, coal, and other fossil fuels at the G20 summit in Pittsburgh last Friday. Subsidies to the tune of $300 billion are spent globally each year to support energy production, which contributes to global warming by artificially maintaining low energy prices and increasing the demand for fossil fuels. If these subsidies are eliminated by 2020, it will mean a 10 percent reduction in greenhouse gas emissions by 2050. While environmentalists praised the decision, the G20 did not advance any plans to give developing nations the financial aid they require to switch to more sustainable economies.