Skip to comments.ANALYSIS-Ukraine crisis could boost ballooning fossil fuel subsidies
Posted on 03/08/2022 8:37:41 AM PST by Oldeconomybuyer
LONDON, March 8 (Reuters) - Sky-high oil prices resulting from a potential Russian oil import ban could force governments to pour more cash into fossil fuel subsidies to shield consumers from rising energy bills, rather than use the money to fight climate change.
Even before Russia's invasion of Ukraine, rising energy costs had triggered a wave of subsidies despite countries agreeing to rein them in at the COP26 climate conference in November.
"The last thing that governments want to do is increase any subsidies for fossil fuel use but they have to be sensitive to the price shock," said Ben Cahill, a senior fellow in the Energy Security and Climate Change Program at the Center for Strategic and International Studies (CSIS).
"It's an economic problem we have to deal with today."
Governments are using tax breaks, price caps and other measures aim to help consumers to cope with the huge jump in energy prices.
Wary of angering a cash-strapped electorate, politicians have largely resorted to throwing governnment money at the problem of higher energy prices in the form of subsidies.
"Most politicians don't think beyond the next election cycle," said Elchin Mammadov, Vice President of ESG Research at global equity index giant MSCI.
"Therefore, they'd rather kick the can down the road and prioritise winning votes by subsidising fossil fuels over climate action, where the benefits are more long term."
(Excerpt) Read more at nasdaq.com ...
Russian Climate Change Theater puppet Greta Thunberg needs to redouble her efforts!!
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Subsidize away but without new pipeline construction is worthless to help gas prices
It will be interesting to see how the democraps dig themselves out from under the mountain of shite that Brandon is bringing down on them. Record high gas prices are one thing, but if they keep going up (because when has a democrap plan ever worked?) - even democraps will be standing in line to vote for Trump.
If those idiots hadn’t outsourced their energy policy to that autistic Nordic teenager, they wouldn’t be in this mess.
And what exactly is the value add to voters for higher priced less reliable, less efficient energy sources?
What is the solution for all the non fuel related items, such as fertilizer and plastics, that are totally reliant on fossil fuel bi-products for production. Note these are production based uses and there is no way to replace them with non fossil fuel source.
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