IMF Figures Show UK Subsidizing Fossil Fuel, Slashing Renewables

A new survey from the International Monetary Fund shows that the UK government is still providing billions of pounds in subsidies to fossil fuels, while on the other hand cutting support for renewables.

Analysis of the report done by the RenewableUK Association implies the UK Government is still paying billions of pounds in subsidies to the UK fossil fuel industry, while at the same time making false overtures over the need to cut renewable subsidies to save average homeowners money on their energy bills.

The International Monetary Fund (IMF) survey, How Large Are Global Energy Subsidies?, looked at global energy subsidies, concluding that energy subsidies are "sizeable worldwide and projected to stay high." China is well and above the largest subsidizer in terms of dollars, Ukraine in percent of GDP, and Qatar in per capita terms.

The IMF concluded that "energy subsidies are dramatically higher than previously thought," with estimates for global energy subsidies in 2011 being revised up to $4.2 trillion, more than double the $2.0 trillion previously reported in the 2013 IMF book, Energy Subsidy Reform: Lessons and Implications.

For the UK specifically, the country’s fossil fuel sector received more than £26 billion ($40,326,650,000) in subsidies this year, more than £400 ($620) per citizen, 1.4 percent of UK GDP — in comparison, the UK is only spending 2.1 percent of GDP on defense.

Over on the other side of the aisle, the cost of supporting renewable energy in 2014/15 was £3.5 billion ($5,428,587,500) according to figures from the Department of Energy and Climate Change.

Back to NAFA Connection