HK$78 million a minute

May 29th, 2015 atam Posted in Climate change, Earth | No Comments »

This is not the rate some top lawyer or banker charges for their services, but the amount in subsidy given to the fossil fuel industry.

The International Monetary Fund (IMF), no less, has estimated that the fossil fuel industry receives US$5.3 trillion in subsidies a year, a sum larger than the total health spending of the whole world. The financial types worked out the sum by including what good old economists consider ‘externalities’, by including the cost incurred by people affected by bad air and severe weather caused by climate change. They also estimated that cutting these subsidies would cut global greenhouse gas emissions by 20%.

Now we know how we could maybe keep global warming to within 2ºC. The US$120 billion the renewable energy industry gets in subsidy pales in comparison, but if the hefty subsidy given to the fossil fuel industry is withdrawn, then the renewable industry will become competitive without any subsidy at all.

The IMF estimates are being released as Shell prepares to drill for oil in the Arctic. You see, fossil fuel companies are powerful and rich enough to spend any amount to lobby in their own interests, to hell with the planet. Until this type of lobbying is stopped throughout the world, there is little chance future generations will have a habitable planet.

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