According to a new study, G-20 governments are subsidising exploration for fossil fuels with 88 bn dollars. Sure – big part of funding for E&P is from state sponsored entities – which only reflects the fact, that the industry intself is dominated by National Oil Companies (NOCs). Only a fraction of this amount can be labeled as a true subsidy. The rest is CAPEX and lending by international development banks.
“The Fossil Fuel Bailout” is authored by ODI and Oilchange International, two NGOs. You can find it here. The authors have a look at the G-20, which will have a meeting in Brisbane, Australia, next weekend.
Their aim is to remind the politicians of their pledge to do away with subsidies for fossil fuel in 2009. “The G20 must lead by taking swift and decisive action to end public support to fossil fuel exploration.”
According to the report, G-20 governments provide 23 bn US-Dollars in national subsidies (and tax cuts) for exploration and production. State owned enterprises spent 49 bn doillars for exploration and production p.y., while development banks and funds gave 16 bn in new loans. Accordingly, the above mentioned sum of 88 bn is little more than a hotchpotch of divergent figures.
Unfortunately there is no meaningful comparison to subsidies for renewable energy, apart from the fact, that subsidies of 101 bn dollars p.y. are mentioned – quite strange data. In Germany alone, the annual Renewable Energy Levy (EEG-Umlage) amounts to more than 20 bn Euro, one quarter of the alleged worldwide figure.