IEA Warns Against Subsidies Global Fossil Fuel Ballooning

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Block Grant for the consumption of fossil fuels is expected to reach $ 660 billion in 2020 unless reforms are passed to effectively eliminate this type of state aid, the International Atomic Energy Agency (IEA) said on Tuesday.

"Governments and taxpayers have spent about a half a trillion dollars last year to support the production and consumption of fossil fuels," the watchdog of energy to 28 industrialized countries said.

"In a period of continuing high energy prices, subsidies are a significant economic burden," he said in a statement of its annual energy outlook of the world, to be published in full on November 9.

IEA estimates the subsidies to 409 billion in 2010, against $ 312 billion in 2009. Petroleum was the largest grant of $ 193 billion in 2010, while $ 91 billion went to natural gas. Iran and Saudi Arabia had the largest subsidies.

"It 'a huge amount of money," IEA chief economist Fatih Birol told a news conference conference of the Organization for Economic Cooperation and Development (OECD), which also presented a report on the matter.

"Without reform, the cost of fossil fuel subsidies, as if to reach 660 billion U.S. dollars in 2020, 0.7 percent of global GDP," said Birol.

In 2010, Birol expected that fossil fuel subsidies is expected to reach $ 600 billion by 2015, without further reforms. He said that the slowdown in growth is due in part to the efforts in some major countries, including China and India.

"Thanks to the improvement of India, China, Russia. Significant efforts have been made. We must be fair," he said, adding that only 8 percent of these subsidies reached the poorest of the population.

The leaders of the Group of 20 (G20) major economies related to Pittsburgh in 2009, gradually, over the medium term, inefficient fossil fuel subsidies, which contribute to unnecessary consumption.

OECD Secretary General Angel Gurria urged rich countries to eliminate subsidies and emergency.

"When (the nations) to seek political solutions to the worst economic crisis in our lives, gradual elimination of subsidies is an obvious way to help governments meet the economic, social and environmental objectives," Gurria said in a press conference .

The elimination of subsidies for fossil fuel consumption by 2020 would reduce global energy demand by 4 percent and significantly reduce the growth of carbon emissions, the IEA said on Tuesday.

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IEA Warns Against Subsidies Global Fossil Fuel Ballooning | bekerja | 5

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