As the G20 summit wraps up in Mexico and many of the members head off to the United Nations Conference on Sustainable Development in Rio de Janeiro, Brazil, the group is being blasted for its failure to reduce the amount of subsidies for crude oil. This press release from the Global Renewable Fuels Alliance (GRFA) says a new Oil Change International report shows that oil subsidies are expected to double to $660 billion by 2020:
“It is not surprising that the G20 has been unsuccessful in reducing fossil fuel subsidies when 9 months ago the IEA stated that oil subsidies were set to more that double in only a decade’s time,” said Bliss Baker, spokesperson for the Global Renewable Fuels Alliance.
“The GRFA has repeatedly called on G20 leaders to shift their policy focus from subsidizing oil consumption towards developing biofuel – friendly policies that are proven to reduce our crippling reliance on fossil fuels. Currently, according to the Institute for Energy Research, oil subsidies completely dwarf any economic incentives to promote renewable fuels – this must change” stated Mr. Baker.
“The failure to reduce oil subsidies highlights the stranglehold oil companies have on our domestic energy policies. The G20 needs to do more to eliminate these staggering subsidies to the wealthiest industry on the planet,” added Mr. Baker.
The press release goes on to say that G20 nations have been more focused on changing their definitions of subsidies than their policies towards them.