{"id":36969,"date":"2023-08-22T09:14:53","date_gmt":"2023-08-22T03:44:53","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=36969"},"modified":"2025-10-11T12:52:43","modified_gmt":"2025-10-11T07:22:43","slug":"g20-provides-record-financial-support-for-fossil-fuels","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/g20-provides-record-financial-support-for-fossil-fuels\/","title":{"rendered":"G20 Provides Record Financial Support for Fossil Fuels"},"content":{"rendered":"<h3><strong>What\u2019s in Today\u2019s Article?<\/strong><\/h3>\n<ul>\n<li><strong>Why in News?<\/strong><\/li>\n<li><strong>Highlights of the IISD Study<\/strong><\/li>\n<li><strong>Concerns raised by the IISD Report<\/strong><\/li>\n<li><strong>Overarching Recommendations for the G20<\/strong><\/li>\n<li><strong>Way Ahead for G20 Governments and India<\/strong><\/li>\n<li><strong>Conclusion<\/strong><\/li>\n<\/ul>\n<h2>\u00a0<\/h2>\n<h2><strong>Why in News?<\/strong><\/h2>\n<ul>\n<li>The International Institute for Sustainable Development (IISD) released a study &#8211; Fanning the Flames: G20 Provides Record Financial Support for Fossil Fuels.<\/li>\n<li>The report comes ahead of the Leaders\u2019 Summit when the Group of 20\/ G20 will meet in Delhi on September 9-10 and attempt to gain consensus on climate change.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>Highlights of the IISD Study:<\/strong><\/h2>\n<p><img decoding=\"async\" src=\"https:\/\/vajiramandravi.s3.us-east-1.amazonaws.com\/media\/editor_images\/2023\/8\/23\/13\/23\/1\/64e5badd6ea810734331dabc_OI.PNG\" alt=\"\" \/><\/p>\n<ul>\n<li>G20 members provided\u00a0<strong>a record $1.4 trillion (~Rs 116 lakh crore) in public money to support fossil fuels in 2022.<\/strong><\/li>\n<li>The amount includes\u00a0<strong>fossil fuel subsidies<\/strong>\u00a0($1 trillion),\u00a0<strong>investments by state-owned enterprises<\/strong>\u00a0($322 billion) and\u00a0<strong>lending from public financial institutions<\/strong>\u00a0($50 billion).<\/li>\n<li>While much of this was support for consumers, around one third (USD 440 billion) was driving investment in new fossil fuel production.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>Concerns raised by the IISD Report:<\/strong><\/h2>\n<ul>\n<li>The financial support for fossil fuels in 2022 is\u00a0<strong>more than double<\/strong>\u00a0the pre-Covid-19 and pre-energy crisis levels of 2019.<\/li>\n<li>This support\u00a0<strong>perpetuates the world\u2019s reliance on fossil fuels<\/strong>, paving the way for yet more energy crises due to market volatility and geopolitical security risks.<\/li>\n<li>It also\u00a0<strong>severely limits the possibilities of achieving climate objectives set by the Paris Agreement<\/strong>\u00a0by incentivizing greenhouse gas (GHG) emissions while undermining the cost-competitiveness of clean energy.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>Overarching Recommendations for the G20:<\/strong><\/h2>\n<ul>\n<li>Act on climate commitments by\u00a0<strong>eliminating all public financial flows to fossil fuels<\/strong>\u00a0except those necessary to provide energy access to the poorest.<\/li>\n<li><strong>The boldest, fastest action should be from the G20\u2019s highest per-capita income members<\/strong>, given their historical responsibility for emissions and higher emissions per unit of GDP.<\/li>\n<li><strong>Incentivise consumers and investors<\/strong>\u00a0to shift away from fossil fuels by setting minimum carbon taxation levels of between USD 25 &#8211; 75 per tonne of carbon dioxide equivalent (tCO2e), depending on country income.<\/li>\n<li><strong>Use revenues from subsidy reform and carbon pricing<\/strong>\u00a0to provide support to low-income and vulnerable households through &#8211;\n<ul>\n<li><strong>Redistributive measures<\/strong>, with targeting based on income and assets and<\/li>\n<li>For the rapid scale-up of<strong>\u00a0clean energy<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<li>To ensure that fossil-dependent communities and energy consumers, particularly developing countries, are supported through\u00a0<strong>flows of finance, knowledge, capacity, and technology.<\/strong><\/li>\n<\/ul>\n<h2>\u00a0<\/h2>\n<h2><strong>Way Ahead for G20 Governments and India:<\/strong><\/h2>\n<ul>\n<li><strong>G20 governments:<\/strong>\n<ul>\n<li>They need to shift their financial resources away from fossil fuels to instead provide\u00a0<strong>targeted, sustainable support for social protection<\/strong>.<\/li>\n<li>Maintaining fossil fuel\u00a0<strong>prices that reflect the cost these fuels impose on society\u00a0<\/strong>will be necessary to reduce fossil fuel use.<\/li>\n<\/ul>\n<\/li>\n<li><strong>India:<\/strong>\n<ul>\n<li>As G20 chair, India can confidently demonstrate global leadership in this area, having reduced its fossil fuel subsidies by 76% from 2014 to 2022 while significantly increasing support for clean energy.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>Conclusion:<\/strong><\/h2>\n<ul>\n<li>\u00a0The <a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/g20\/\" target=\"_blank\"><u>G20<\/u><\/a> has the power and the responsibility to transform our fossil-based energy systems.<\/li>\n<li>It is crucial for the bloc to put fossil fuel subsidies on the Delhi Leaders\u2019 Summit agenda and take meaningful actions to eliminate all public financial flows for coal, oil and gas.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3><strong>Q1) What is the International Institute for Sustainable Development (IISD)?<\/strong><\/h3>\n<p>The IISD is an independent think tank founded in 1990 working to shape and inform international policy on sustainable development governance. It is a registered charitable organisation in Canada.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<h3><strong>Q2) What are the 3 goals of the Paris Agreement?<\/strong><\/h3>\n<p>The Paris Agreement sets out a global framework to avoid dangerous climate change by limiting global warming to well below 2\u00b0C and pursuing efforts to limit it to 1.5\u00b0C. It also aims to strengthen countries&#8217; ability to deal with the impacts of climate change and support them in their efforts.<\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<p><strong>Source:\u00a0<\/strong><a href=\"https:\/\/indianexpress.com\/article\/india\/g20-countries-gave-record-1-4-trillion-to-support-fossil-fuels-in-2022-report-8904652\/\" target=\"_blank\" rel=\"nofollow noopener\"><u>G20 countries gave record $1.4 trillion to support fossil fuels in 2022: report<\/u><\/a>\u00a0|\u00a0<a href=\"https:\/\/www.energypolicytracker.org\/G20-fossil-fuel-support\" target=\"_blank\" rel=\"nofollow noopener\"><u>EnergyPolicyTracker<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>G20 members provided a record $1.4 trillion (~Rs 116 lakh crore) in public money to support fossil fuels in 2022.<\/p>\n","protected":false},"author":5,"featured_media":36970,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-36969","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/36969","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=36969"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/36969\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/36970"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=36969"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=36969"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=36969"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}