BLOOMBERG • October 23, 2023
Targets for carbon abatement have gotten more ambitious and policies to address the challenge are proliferating. Yet one measure shows how badly these efforts still fall short. Last year, global fossil-fuel subsidies expanded to a new record — $7 trillion, roughly 7% of global gross domestic output. With some of their policies, governments push fossil-fuel demand in the right direction; then, with generous subsidies for pollution and climate change, they push it back. Insisting that people pay full price for fuel would not only reduce consumption and slash emissions. Finally, cutting subsidies raises revenue, which allows for higher spending on worthwhile goals, lower government borrowing and/or cuts in other taxes.