💡 Here's a bold idea: What if we redirect fossil fuel subsidies towards #climatefinance? 💚 Imagine the #impact: Cleaner energy, innovative solutions, and a sustainable future for everyone 🌱.
🛢️ Earlier this year, in a eye-opening report by the International Monetary Fund, it was revealed that global #fossilfuel #subsidies have hit a staggering $7 trillion. This figure is not just a number; it's a reflection of our priorities as a global community.
💰 The report highlights that these subsidies, largely implicit, are not only a financial burden but also contribute significantly to environmental degradation. The majority of these subsidies arise from not accounting for the environmental costs of fossil fuels, particularly coal and diesel. This oversight leads to over $5 trillion in unaccounted environmental damages. This could double if climate was valued at levels found in a study by Rennert et al. (2022).
❓ We must question and challenge the status quo. Should we not consider diverting these massive subsidies towards climate finance, which is desperately underfunded?
🚦 Redirecting these funds could be a game-changer in our fight against climate change. It could provide the much-needed impetus for cleaner energy sources, innovative climate solutions, and a sustainable future for all. Moreover, it's not just about the environment; it's also about social equity. The current subsidy structure disproportionately benefits wealthier households, leaving the vulnerable behind.
🤔 In a recent post, I highlighted the climate finance gap, pictured below based on a report from the Climate Policy Initiative. This could be largely met by redirecting fossil fuel subsidies. While this is only a thought experiment, it goes to show that we could finance the transition to a low carbon future.
🚨 As we stand at a critical juncture in our fight against climate change, the choice is clear but weather we make it is everything but looking at #COP28 and weather the final text will include a #phaseout of fossil fuels.
#ClimateAction #Sustainability #leadership
Independent Consultant
1moThe adoption and diffusion of new energy sources and new prime movers have been the fundamental physical reasons for economic, social and environmental change and they have transformed virtually every facet of modern societies. In the past, high energy societies created by the rising consumption of fossil fuels became the very epitome of change, leading to a widespread obsession with the need for constant innovation (Vaclav Smil). We're now in another period of energy transition, and times like these represent unprecedented opportunity for a paradigm shift in growth and development. Technology, policies and markets need to be aligned or created... The key to economic efficiency is specialisation, so success depends on continued value and therefore a de-risked and accelerated change agenda that drives current performance and builds the capabilities required for sustainable, shared advantage. The corporate world is bifurcating between high value-creating, resilient, adaptive, and future-proofed winners—companies that are built for the future—and companies that risk underperformance, and even extinction, by failing to respond fast enough to the tectonic changes taking place. #carpediem