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Fossil fuel subsidies to end by 2025- G7 nations pledge

G7 nations pledge to end fossil fuel subsidies by 2025 http://www.theguardian.com/environment/2016/may/27/g7-nations-pledge-to-end-fossil-fuel-subsidies-by-2025
Leaders of the UK, US, Canada, France, Germany, Italy, Japan and the EU urge all countries to join them in eliminating support for coal, oil and gas in a decade, Guardian, Karl Mathiesen 29 May 16, The G7 nations have for the first time set a deadline for the ending most fossil fuel subsidies, saying government support for coal, oil and gas should end by 2025.

The leaders of the UK, US, Canada, France, Germany, Italy, Japan and the European Union encouraged all countries to join them in eliminating “inefficient fossil fuel subsidies” within a decade.

“Given the fact that energy production and use account for around two-thirds of global greenhouse gas emissions, we recognise the crucial role that the energy sector has to play in combatting climate change,” said the leaders’ declaration,issued at the end their summit in Japan. The pledge first entered into G7 (then known as G8) declarations in 2009 but has until now lacked a firm timeline.

Shelagh Whitley, a research fellow at the Overseas Development Institute, called it an “historic day” but said 2020 was a more appropriate date if governments were serious about their commitments to the global climate deal agreed in Paris in December.

Across the G7, subsidies are already falling, assisted by falling commodity prices. A notableexception is the UK, which increased subsidies by opening up new tax breaks for North Sea oil producers. Japan has been criticised for funding new coal projects, both at home and abroad.

“We already see [some in] the G7 going in the wrong direction since Paris. Just because they are saying this [about fossil fuel subsidies], it’s not afait accompli,” said Whitley. Canada also recently extended some subsidies for natural gas.

The G7 joins the leaders of the Organisation for Economic Co-operation and Development (OECD)and the World Bank, who have previously called for an end to assistance for fossil fuel projects.

The statement did not define precisely what the G7 consider to be a subsidy. The word “inefficient” in the G7 text indicates subsidies that distort energy markets. The OECD estimates that this type of support for fossil fuels within its member states is $160-200bn (£109-136bn) each year.

May 30, 2016 - Posted by Christina Macpherson | 2 WORLD, climate change