10% Of Fossil Fuel Subsidy Could Fund ‘Green Transition’ Says Study

We all know that the time is now to change to cleaner energy, that’s why you’ve come to commercial energy consultants for advice on how to implement it in your organisation, however, while we know it’s our social responsibility to do so, no one is denying that it comes with initial expenditure. 

However a recent study has discovered a good source of cash that experts say will help to lead a ‘runaway clean energy revolution’, according to The Guardian. This source? A fraction of subsidies currently provided to support fossil fuels. The report by the International Institute for Sustainable Development (IISD) says that if just 10 to 30 per cent of the £305 billion a year subsidies were re-directed from fossil fuels to green energy sources would pay for a ‘global transition.’

One reason for this is that with this funding supplied to renewable energy sources, making green energy the cheapest source of electricity available, which in turn would incentivise a quicker global embrace of this energy source.

Richard Bridle of the IISD says that this re-direction of subsidies would turn clean energy into a no brainer for all economies: “Renewables are so close to being competitive that this tips the balance, and turns them from a technology that is slowly growing to one that is instantly the most viable,” he says.

Taking away from fossil fuel subsidies is not a new idea, however, despite G20 nations voting to phase out these funds back in 2009, some 10 years later, progress has been slow.