Zombie Energy: Climate benefits of ending subsidies to fossil fuel production
This working paper explains how different production subsidies currently unlock “zombie energy” from fossil fuel deposits that would not be commercially viable to produce without government support.
It also presents new modelling of the global removal of certain subsidies to fossil fuel production. In doing so, the report builds on the dataset from the previous Overseas Development Institute (ODI) and Oil Change International (OCI) report “Empty Promises: G20 Subsidies to Oil, Gas and Coal Production” (Bast, Doukas, Pickard, van der Burg, L., & Whitley, 2015) as well as research by the Global Subsidies Initiative (GSI) on both the scale and impacts of various fossil fuel subsidies.
The report is structured as follows:
- Chapter 1 explains why fossil fuel production subsidies matter for climate change. The chapter also defines and categorizes fossil fuel production subsidies.
- Chapter 2 outlines how different subsidies influence investment decisions related to fossil fuel production.
- Chapter 3 discusses modelling of a removal of fossil fuel production subsidies and inputs of the GSI-IF (p) global model.
- Chapter 4 presents results of new modelling that shows how much coal, oil and gas could become uneconomical to produce—and the GHG emission reductions that would result—if certain fossil fuel production subsidies are removed globally.
The report concludes with a summary of the findings as well as opportunities for further research on the climate benefits of fossil fuel subsidy removal.
Participating experts
You might also be interested in
LNG the wrong choice at the wrong time for B.C.
As 2023 begins, B.C. Premier David Eby and his new cabinet are setting priorities and determining which policies of the Horgan government to carry forward and which to cast aside. Liquefied natural gas exports touch on a host of critical issues that Eby and key ministers are considering.
Fighting for a place to breathe
In the shadow of a retired coal-fired power plant in India's capital, Meena Devi tries to make her family home -- four brick walls with a tin roof -- a safe place to breathe.
Subsidies for renewable energy and EVs more than double: Study
Nagpur: India’s subsidies for renewable energy and electric vehicles more than doubled this fiscal, according to a new study by independent think-tank International Institute for Sustainable Development (IISD). However, it also found that it will be critical for the government to build this momentum over the coming years to reach the country's climate targets.
EV subsidies in India doubled in FY 2022: IISD report
According to a recent study conducted by IISD (International Institute for Sustainable Development) subsidies for renewable energy and EVS in India have more than doubled in FY 2022. India still allocated four times more support to fossil fuels than clean energy, although the gap narrowed significantly since FY 2021 when support was nine times greater.