Country Climate Engagement
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Carbon Fee & Dividend for France and the European Union
In its National Low-Carbon Strategy, Stratégie Nationale Bas Carbone, France had set a clear trajectory on increasing its carbon tax. However, the new government elected in 2017 decided last year to increase it even more than anticipated. As the increase is slowly cumulating with fossil fuel price hikes, the Government faces unprecedented mobilization against fossil fuel increase; this could have been avoided if the context had been explained and social compensation had not been neglected. Unfortunately, the former State Secretary to the Environmental and Social Transition (MTES – Ministre d’Etat à la Transition Ecologique et Solidaire), Nicolas Hulot, has done...
France Subsidies
Fossil fuel subsidies (excluding tax advantages on Diesel) in France accounted for €1.41 Billion in 2017 down from €3.42 Billion in 2014. The total, including advantages on Diesel, accounts for €7-10 Billion a year. These subsidies mainly consist of tax exemptions / fiscal gifts on the one hand and, direct budget transfer / support on the other hand. For instance, VAT on gas in French Overseas Territories is 13% compared to 20% in mainland France. In the same way, the airline industry benefits from tax exemption on kerosene for domestic flights. On the other hand, direct budget support is relatively...
United States Subsidies
United States–$8.157 billion in 2015 The US Federal Government paid a total of USD 4.757 billion in 2015 subsidies to the fossil fuel industry, as well as USD 3.4 billion to the Low-Income Home Energy Assistance Program (LIHEAP) to subsidize fossil fuels in the residential sector. According to a G20 report in 2016, “Fossil-fuel subsidies are also often granted in order to avoid producers shutting down operating wells in response to sudden price drops.” However, the report continues, “Hedging producers against market-price volatility, however, reduces incentives to innovate and develop productivity-enhancing technologies.” Reliable, comparable statistics are not available for the...
United Kingdom Subsidies
United Kingdom–6 billion GBP every year Fossil fuel subsidies are a contentious issue for the UK. Over the past 5 years, The UK has become the only G7 nation to increase its’ support for the production of fossil fuels—despite earlier pledges to phase them out entirely— and it is now the fifth largest global subsidizer with an estimated £6 billion given in subsidies to the fossil fuel industry every year. Most of this is in the form of tax breaks to help boost declining North Sea oil production (which has included figures such as £551 million being given to the...
Turkey Subsidies
Turkey–Exact amount not available, estimated between US $ 300 million and $ US 1.6 billion It is difficult to record the actual amount that Turkey spends on fossil fuel subsidies. According to a report published by Oil Change International and 350.org in 2015; Turkish government provides an estimated US$300 million to US$1.6 billion (TRY 683 million to TRY 3.6 billion) per year in fossil fuel producer subsidies. Given the number of subsidies for which data is not available, this estimate is likely highly conservative. In 2013, Turkey provided some US$500 million in public funding specifically for fossil fuel exploration. In addition, the government provided between $250...
Thailand Subsidies
Q 16 Thailand–$.438 billion spent on fossil fuel subsidies in 2016 Increased awareness by the government about the revenue drain caused by fossil fuel subsidies has helped spark a decline since 2011 in subsidy spending. A 2014 news report by the Asian Correspondent revealed Thailand’s fossil fuel subsidy allocations. To reflect upon the annual subsidy allocations for 2011, 2012 and 2013; former Energy Minister of Thailand Piyasvasti Amranand argues, “Thailand’s junta should remove fuel subsidies that have cost $15.6 billion over the past three years to free up funds for crucial infrastructure projects.” Piyasvasti Amranand also emphasized the increased government...
Spain Subsidies
Spain–1,177 million Euros between 2014 and 2016 Spain is a country that has been fossil fuel dependent and that is still far from being a significant producer of renewable energy. According to data from the World Bank Group on Energy Consumption, in 2015, 72.9% of the energy consumed in Spain was from fossil fuels. The Overseas Development Institute (ODI) and the Climate Action Network (CAN) released the results of the study called Monitoring Europe’s Fossil Fuel Subsidies in September 2017. This study highlights that “Spain’s transparency and reporting on fossil fuel subsidies is relatively poor. – … – The fossil...
South Korea Subsidies
South Korea–$667 million in 2013-2014 counting domestic subsidies and subsidies for overseas oil and gas exploration According to a report, “G20 subsidies to oil, gas and coal production: Republic of Korea”, that was published in 2015, South Korea’s subsidies for fossil fuels can be summarized as follows: As the table above shows, the majority of South Korea’s subsidies have been used for supporting coal production, and the largest subsidy went to the production of coal briquettes. This is related to South Korea’s energy market structure. In South Korea, major energy industries are still publicly owned. For example, Korea National Oil...
Saudi Arabia Subsidies
Saudi Arabia–$60.9 billion in 2011 Diesel and gasoline sold in Saudi Arabia are about 12% and 30% of international reference prices, respectively. Saudis enjoy the second lowest domestic fossil fuel prices in the world, behind only Venezuela. In 2009, the Kingdom spent a total of $32.5 billion on fossil fuel subsidies. In 2010, this figure increased to $43.6 billion. In 2011, it ballooned to $60.9 billion. Of its total subsidy spending in 2011, 76 percent went to subsidizing oil, while 24 percent went to electricity, which is also derived from oil. Riyadh is currently the second highest spender on fossil fuel subsidies...
Russia Subsidies
Russia–$14.4 billion in 2010 Generally, the federal government’s fossil fuel subsidies in Russia are complex and not transparent. Five years ago, an extensive research report “Government subsidies to oil and gas: at what costs?” was published with support of WWF and International Institute of Sustainable Development. This research summarized the possible subsidies schemes for oil and gas industries in Russia. This research identified 30 schemes for granting subsidies to oil and gas producers in Russia at the federal level. These schemes included: direct support (state targeted financing, state loans on preferential terms, etc.), and indirect support—for example, the state’s acceptance...