Recently, the Deputy Secretary-General of the World Trade Organization (WTO) Harsha V. Singh once again attacked the fossil fuel subsidy system. At a meeting of the WTO, Singh stated: "The reform of the fossil fuel subsidy system will accelerate the transformation of the global energy structure toward renewable energy. The reform of the fossil fuel subsidy system is undoubtedly the main means by which the international community responds to climate change."
According to data provided by an international organization called the Global Subsidy Initiative (GSI), governments around the world currently spend 500 billion U.S. dollars each year to subsidize the fossil fuel industry. And Stephen Stone, head of the Economic and Trade Department of the United Nations Environment Program, said that the annual global fossil fuel subsidies to consumers and producers can reach 700 billion US dollars.
According to data provided by some international agencies, the reform of the fossil fuel subsidy system can reduce carbon dioxide emissions by 1.1% in the short term and reduce global carbon dioxide emissions by 18% by 2050.
However, reducing subsidies for fossil fuels is a complex process. First, many countries have not reduced their intention to subsidize fossil fuels. For example, Venezuela has the lowest natural gas prices in the world because of the large amount of subsidies. In Iran, the price of fossil fuels is also very low, and the Iranian government needs to spend US$55 billion annually to subsidize its fossil fuel consumption. In these countries, the price of fossil fuels is closely related to political campaigns. If political candidates or leaders oppose fossil fuel subsidies, they will endanger their careers. Therefore, although many leaders have realized the impact of fossil fuels on global warming and the environment, they do not have the political incentive to reduce the subsidies for fossil fuels. In addition, reducing the subsidies for fossil fuels is a controversial and complex issue because it involves a series of direct or indirect subsidies such as tax relief, credit, or insurance support. Furthermore, the reform of the fossil fuel subsidy system will involve changes to the WTO rules, and these changes will require the consensus of its 153 member states. As everyone knows, finding consensus in WTO member states is difficult.
In September last year, at the summit of 20 leaders held in Pittsburgh, United States, the participating countries passed a resolution that did not have legal binding force, and stipulated that by the middle of this century, subsidies for fossil fuels will be gradually stopped. However, many environmental groups have pointed out that such abolition is too slow. Economists and environmentalists stressed that reform of the fossil fuel subsidy system will allow fossil fuel prices to reflect environmental costs and end price distortions in the energy market, which will be conducive to the development of clean energy.
David Victor, a professor of political science at the School of International Relations and Peace Research at the University of San Diego, is the head of GSI's study to end subsidies for fossil fuels. Commenting on China’s efforts in this regard, he said: “China is an example of a successful phase-out of subsidies for fossil fuels. China’s adoption of political measures to significantly reduce its subsidies for fossil fuels has not only reduced the country’s greenhouse gas emissions, but also Let China invest in renewable resources and other sustainable development projects."
According to data provided by an international organization called the Global Subsidy Initiative (GSI), governments around the world currently spend 500 billion U.S. dollars each year to subsidize the fossil fuel industry. And Stephen Stone, head of the Economic and Trade Department of the United Nations Environment Program, said that the annual global fossil fuel subsidies to consumers and producers can reach 700 billion US dollars.
According to data provided by some international agencies, the reform of the fossil fuel subsidy system can reduce carbon dioxide emissions by 1.1% in the short term and reduce global carbon dioxide emissions by 18% by 2050.
However, reducing subsidies for fossil fuels is a complex process. First, many countries have not reduced their intention to subsidize fossil fuels. For example, Venezuela has the lowest natural gas prices in the world because of the large amount of subsidies. In Iran, the price of fossil fuels is also very low, and the Iranian government needs to spend US$55 billion annually to subsidize its fossil fuel consumption. In these countries, the price of fossil fuels is closely related to political campaigns. If political candidates or leaders oppose fossil fuel subsidies, they will endanger their careers. Therefore, although many leaders have realized the impact of fossil fuels on global warming and the environment, they do not have the political incentive to reduce the subsidies for fossil fuels. In addition, reducing the subsidies for fossil fuels is a controversial and complex issue because it involves a series of direct or indirect subsidies such as tax relief, credit, or insurance support. Furthermore, the reform of the fossil fuel subsidy system will involve changes to the WTO rules, and these changes will require the consensus of its 153 member states. As everyone knows, finding consensus in WTO member states is difficult.
In September last year, at the summit of 20 leaders held in Pittsburgh, United States, the participating countries passed a resolution that did not have legal binding force, and stipulated that by the middle of this century, subsidies for fossil fuels will be gradually stopped. However, many environmental groups have pointed out that such abolition is too slow. Economists and environmentalists stressed that reform of the fossil fuel subsidy system will allow fossil fuel prices to reflect environmental costs and end price distortions in the energy market, which will be conducive to the development of clean energy.
David Victor, a professor of political science at the School of International Relations and Peace Research at the University of San Diego, is the head of GSI's study to end subsidies for fossil fuels. Commenting on China’s efforts in this regard, he said: “China is an example of a successful phase-out of subsidies for fossil fuels. China’s adoption of political measures to significantly reduce its subsidies for fossil fuels has not only reduced the country’s greenhouse gas emissions, but also Let China invest in renewable resources and other sustainable development projects."
KMP Cat Parts,Cat Engine Parts,KMP Cat Stamping Parts,Custom KMP Cat Parts,CAT Spare Parts
JINING SHANTE SONGZHENG CONSTRUCTION MACHINERY CO.LTD , https://www.sdkomatsuexcavatorparts.com