Globally, fossil fuel subsidies were $7 trillion in 2022 or 7.1% of GDP.  Explicit subsidies – the undercharging for supply costs – have more than doubled since 2020.  This equals 18% of the total subsidy, while nearly 60% is due to undercharging for global warming and local air pollution.  Differences between efficient prices and retail fuel prices are large, for example, 80% of global coal consumption was priced at below half of its efficient level in 2022.  Full fossil fuel price reform would reduce global carbon dioxide emissions (CO₂) to an estimated 43% below baseline levels in 2030 (in keeping with global warming to 1.5-2ᵒC).  It could raise revenues worth 3.6% of global GDP and prevent 1.6 million local air pollution deaths per year and lead the transition to clean energy.



Black, Simon, and Antung A. Liu, Ian Parry, Nate Vernon. "IMF Fossil Fuel Subsidies Data: 2023 Update". International Monetary Fund. August 2023. https://www.imf.org/... (Contributed by Gregory Autin).

Posted on 11/03/25

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