Fossil fuel subsidies hit $1.3 trillion despite government pledges to end them: The report by the International Monetary Fund (IMF) looked at both
explicit and implicit subsidies for fossil fuels across 170 countries.
It found explicit subsidies alone have more than doubled since the
previous IMF assessment, rising from $500 billion in 2020 to $1.3
trillion in 2022 as governments rushed to mitigate the inflationary
impact of Russia’s invasion of Ukraine and the spike in demand caused by
the economic recovery from Covid-19. Those subsidies are direct
monetary support for fossil fuels through activities like regulated
prices set below international levels and energy bill rebates.
IMF also calculates implicit fossil fuel subsidies, which include the
cost of things such as undercharging for environmental costs and
failing to levy taxes on consumption. Adding those in and the total
subsidies ballooned to $7 trillion in 2022. That’s an increase of $2
trillion compared to 2020.