The lies of the G20
Although we can all recognize that climate change is coming to our doorsteps (well, Mr. Donald Trump is still not very clear about it) and that our future depends on the actions we take now, even so, some countries that make up the G20 is not clear.
The G20 countries (remember that it is the club of the largest economies in the world) are contributing to the coal industry three times more money in subsidies than a few years ago, according to a new report issued by the Overseas Development Institute (ODI).
Actually, the contradiction is served or the G20 has a short memory, because a decade ago (See article), they already pledged gradually to eliminate subsidies for fossil fuels… What is happening?
If we look a little closer at the numbers in the report; Accounting for financial and tax subsidies for coal or maintenance and investment on coal-based power plants, we find that the average annual amount increased from $ 17 billion in 2014 to $ 47 billion in 2022.
Subsidies have increased from $ 17 billion (2014) to $ 47 billion (2022)
But… Do all countries contribute the same? Not directly, and to have it a little clearer is the following graph …
This increase in subsidies has a considerable global impact considering that the G20 bloc represents almost 80% of global emissions. Directly, it is 'torpedoing' the global race to achieve the zero emissions target.
But the story does not end here, because we do have positive data. According to the report, direct subsidies to coal mining were cut in half during the 2014-2022 period, from $ 22 billion to $ 10 billion. Then… Why the increase in subsidies?
As detailed in the document, there are different reasons for the disparity of values. In general: The first would be to prop up the sector for political reasons, the second, an indirect way of helping companies that are dedicated to coal mining and the third, investments in coal mining are being reduced because every time they are opening less.
From the perspective of countries that provide more coal subsidies. In countries like India, China and Indonesia, coal subsidies go to support state-owned companies, which provide jobs in large numbers.
In rich countries like the United States, Europe and South Korea, part of this money is spent on energy resilience, in short, paying high prices to keep coal available in those days of high energy demand. (See article tricks to save energy)
And in the poorest countries, they often subsidize fossil fuels to provide affordable electricity to citizens.
About 5% of the grants identified in the report were used to help the transition away from coal, mainly in the UK and Germany.
Since 2022, other interesting programs have been launched, including a $ 15 billion fund in China for coal and steel workers, and a € 250 million scheme for coal miners in Spain, which does not it is a G20 country.
As a note, to laugh or cry, as Japan is one of the biggest economic supporters of coal, its Prime Minister said in September… ”Climate change can endanger the lives of all generations. We must take more energetic measures and reduce the use of fossil fuels »… Now let's see how you explain it!
If you want more information, you can access the Overseas Development Institute (ODI) where they also have more specific analysis by country.
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