Global fossil fuel subsidies hit record $7 trillion – Kommersant
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The International Monetary Fund (IMF) has released a report on global fossil fuel subsidies (.pdf). Global fossil fuel subsidies hit a record $7 trillion in 2022. The volume of Russian subsidies for fossil fuels in 2022 amounted to $421 billion, according to this indicator, the country is among the top three, follows from the report of the organization.
The IMF report says that the increase in subsidies is associated with a sharp increase in the cost of energy. According to experts, the increase was due to the economic recovery after the COVID-19 pandemic and the military conflict between Russia and Ukraine.
The IMF notes that about half of global subsidies go to East Asia and the Pacific. By country, China remains the largest subsidizing country in absolute terms. It is followed by the USA, Russia, the EU and India. China accounted for $2.2 trillion of total subsidies last year, the US for $760 billion, Russia for $421 billion, India for $350 billion, and the EU for $310 billion.
According to the tables presented in the report, Russian subsidies for fossil fuels correspond to 23.6% of GDP. The volume of explicit subsidies for the reporting period amounted to $71 billion. Implicit subsidies to Russia, according to the IMF, amount to $351 billion.
The IMF defines fossil fuel subsidies as a country’s consumption of fuel multiplied by the difference between actual prices and the prices that would be if imported into the country.
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