IISD proposes subsidy reallocation

The Global Studies Initiative of the International Institute for Sustainable Development (IISD) has conducted a study of multinational government subsidies into fossil fuel industries, claiming that a redistribution of between 10 and 30 per cent of subsidy money toward clean energy industries could be enough to fund the full energy transition to renewable energy production.

Richard Bridle, IISD Senior Policy Advisor predicts that renewable energy subsidies will become more attractive to governments, stating that “as renewables have become cheaper, the same dollars can now fund more renewable-powered generation”. The report included India, Indonesia, Zambia and Morocco as examples of governments who have taken steps to replace fossil fuel energy sources with more sustainable options, with India cutting petroleum subsidies by 75 per cent in the past five years.

The private sector has also begun to see transitions toward clean energy, with the likes of BP making investments into solar energy with Lightsource BP in Brazil. Governments and investors alike appear to be losing faith in the fossil fuel industry as coal fired power plants like Aberthaw B close down (reported on here) and investment firms like BlackRock are reported to have lost $90bn over the last decade, with 75 per cent of these losses due to the firm’s investments in fossil fuel-based energy producers. More on this story here.

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