Fossil Fuel Subsidies Six Times More Than Renewable Energy

Fossil-fuel consumers worldwide received about six times more government subsidies than were given to the renewable-energy industry, according to the chief adviser to oil-importing nations.

State spending to cut retail prices of gasoline, coal and natural gas rose 36 percent to $409 billion as global energy costs increased, the Paris-based International Energy Agency said today in its World Energy Outlook. Aid for biofuels, wind power and solar energy, rose 10 percent to $66 billion.

While fossil fuels meet about 80 percent of world energy demand, its subsidies are “creating market distortions that encourage wasteful consumption,” the agency said. “The costs of subsidies to fossil fuels generally outweigh the benefits.”

The Group of 20 nations in 2009 pledged to phase out state aid for carbon-based fuels dug or pumped out of the earth. In the U.S., energy subsidies are becoming an issue in next year’s presidential election after Solyndra LLC went bankrupt with $535 million of loan guarantees by the federal government. Republican contender Rick Perry, the governor of Texas, has pledged to end all federal energy subsidies.

http://www.bloomberg.com/news/2011-11-09/fossil-fuels-got-more-aid-than-clean-energy-iea.html