IEA Calls For Scrapping $312B In Fuel Subsidies

May 01, 2011 - Chris Whitmore - firstenercastfinancial.com

ABU DHABI (AFP)--The International Energy Agency is calling for $312 billion in fuel subsidies to be scrapped in a bid to promote clean energy sources, according to a report presented in Abu Dhabi Wednesday.

"More aggressive clean energy policies are required, including the removal of fossil fuel subsidies and implementation of transparent, predictable and adaptive incentives for cleaner, more efficient energy options," said the Clean Energy Progress Report.

Fossil fuels currently attract $312 billion in consumption subsidies, compared with $57 billion for renewable energy, it added, without specifying which countries were to blame.

It is not enough for developed countries to cut their carbon dioxide emissions, the report said, arguing that developing countries must do so as well.

"Even if countries belonging to the Organization for Economic Co-operation and Development somehow drove their emissions to zero, on today's path, emissions from non-OECD countries would still lead to environmental disasters on an epic scale," it said.

According to the same source, renewables are gaining traction, but demand for fossil fuels is growing even faster.