According to calculations by the International Monetary Fund (IMF), seven trillion U.S. dollars were spent on direct and indirect subsidies for fossil fuels in 2022. The war in Ukraine and the resulting rise in energy prices are partly responsible for the significant increase in the previous year.
But even before that, the trend was already upwards, as this infographic illustrates. Subsidies are also likely to increase in the future. According to analysts, the reason for this is the economic growth of the Global South and the resulting increase in the consumption of coal, oil and gas.
Government support for fossil fuels is equivalent to just over seven percent of the planet’s economic output. A direct comparison with another important government budget item, for example, shows how enormous this sum is. Education spending by all countries combined accounts for 4.3 percent of global gross domestic product.
Countering fossil fuel subsidies, according to the IMF, would not only offer a chance to put humanity back on track to meet its climate goals, but could also prevent 1.6 million premature deaths per year and increase government revenues by $4.4 trillion.
