G20 countries produce oil, gas and coal like never before
Officially, many G20 countries want to drive forward the transformation of their energy production. In reality, however, the states are subsidizing fossil fuels more than ever before. According to a report, the trillions of euros could have been used to promote solar energy on a huge scale.
According to a report, the G20 countries granted record subsidies for fossil fuels last year. Against the backdrop of rising energy prices, the governments and public companies of the states more than doubled their subsidies in this area in 2022 to almost 1.3 trillion dollars (1.19 trillion euros) compared to the previous year, according to a report by BloombergNEF (BNEF).
The 19 countries of the G20 group, which also includes the European Union and the African Union, were analyzed. According to the data, around 830 billion dollars flowed into price supports for consumers. According to the BNEF report, the rest went to gas, oil and coal producers, "although many of them have made record profits".
In 2021, the subsidies amounted to 583 billion dollars. For the current year, the authors expect a slight decline compared to 2022, but subsidies are likely to be higher than in previous years, according to the report. The authors based their report on data from the Organization for Economic Cooperation and Development (OECD) and the International Energy Agency, among others.
Almost two terawatts of solar power possible
According to the report, the subsidies in 2022 could have financed solar power plants with a capacity of 1.9 terawatts. This would have corresponded to ten times the capacity installed by the G20 last year.
The report also looks at a CO2 price, which currently exists in 13 of the G20 countries. The authors criticize the fact that the majority of these programmes are inefficient due to a price that is too low or too many concessions such as tax exemptions.
The report was published around a week and a half before the UN Climate Change Conference COP28 in the United Arab Emirates. Measures to combat the climate crisis will be discussed in Dubai from November 30 to December 12.
- Despite the G20 countries' declared ambition to transition their energy production, they provided record subsidies of over 1.19 trillion euros for coal-fired power plants, oil, and gas in 2022, according to BloombergNEF's report.
- If the subsidies for fossil fuels in 2022 had been redirected towards solar energy, it could have funded the construction of 1.9 terawatts of solar power plants, representing a 10-fold increase in the G20's solar capacity installed the previous year.
- The European Union, being part of the G20 group, continues to provide subsidies for fossil fuel production, despite rising CO2 emissions and the need for urgent actions against climate change, as highlighted in the annual climate conferences such as the COP28.
Source: www.ntv.de
