26 Jun '12, 2pm

'Sunset Credits' Could Mark End of Day for Oil Subsidies

'Sunset Credits' Could Mark End of Day for Oil Subsidies

Yet it turns out that one specific climate challenge — how to eliminate subsidies for fossil fuels such as oil, gas and coal — is attracting extraordinary interest in Rio de Janeiro and might at least inspire countries to take small but significant steps toward reducing greenhouse-gas emissions. These rising subsidies cost the world $409 billion in 2010, according to the International Energy Agency. If no efforts are made to curtail them, they could reach $660 billion by 2020, 0.7 percent of global gross domestic product. What’s at least as bad is that the subsidies keep the price of fossil fuels below market rates — so low as to discourage measures to improve energy efficiency. Getting rid of them could lower total energy demand by 4.1 percent by 2020, the IEA estimates. Simply ending the subsidies would boost the price of power, however, and leaders naturally want to avo...

Full article: http://www.renewableenergyworld.com/rea/news/article/2012...

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