IMF: Subsidy reduction creates climate t • Table.Briefings

A new report by the International Monetary Fund shows that government subsidies for fossil fuels reached a new record of seven trillion US dollars in 2022. A comprehensive reform could drastically lower global emissions, save millions of lives, and generate billions for countries to make necessary investments.

As part of the international debate on a phase-out of fossil fuels, the International Monetary Fund (IMF) in Washington presented new figures on government subsidies for fossil fuels. In 2022, direct and indirect subsidies from taxpayers’ money for oil, coal and gas amounted to a total of seven trillion US dollars worldwide, or 7.1 percent of global economic output. According to the IMF working paper, a reform of the system could cut global carbon emissions by a total of 43 percent by 2030 and thus help meet the 2-degree limit of the Paris Agreement.

IMF: Subsidy reduction creates climate targets

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