Renewable Energy Subsidies & Fossil Fuel Phase-Out

Over the last several months the Spanish government has been negotiating with the wind power industry group Asociación Empresarial Eólica (AEE) in an effort to reach a compromise over proposed reductions to renewable energy subsidies. Renewable generation accounted for 18.8 percent of total energy generation in Spain last year, which the Ministry of Industry says is proof that the current levels of subsidies are not necessary.

Greenpeace has released a report that estimates total energy and transport subsidies in Australia at between A$9.3 billion and A$10.1 billion during 2005-06.

Thailand debates cutting oil subsidies Regulators in Thailand are debating three options for oil subsidy reform. These include ending subsidies from the State Oil Fund and oil refineries; simultaneously terminating the State Oil Fund subsidy while continuing support from refineries; or gradually eliminating the subsidy from both the oil fund and refineries.

On January 2007, U.S. President George Bush delivered his annual State of the Union address, in which he unveiled a plan to reduce gasoline by 20% over the next decade, in part by promoting alternative fuel sources.

The United States House of Representatives passed legislation last month that would lower tax breaks and other subsidies that the United States government grants the oil industry.

A searchable database that tracks federal spending by the United States government will come on-line by 2008, following legislation passed in September. The Web-based search engine, which will include all federal funding to public and private organizations, has been hailed as a victory for transparency in government operations by a broad coalition of advocacy groups.

If the United States cut ethanol tariffs and subsidies, prices would drop in the US as imports rise dramatically, according to a new report by Iowa State University's Center for Agricultural and Rural Development (CARD).

Asian governments are caught between an ever-increasing demand for cheap energy to fuel development and an unabating rise in global oil prices. A few South-east Asian governments are feeling the financial pain of costly fuel subsidies and are looking elsewhere for energy sources. The hunt for alternative energy sources has led Asian nations to explore biofuel technology, among others.