• 5 minutes Trump will capitulate on the trade war
  • 7 minutes China 2019 - Orwell was 35 years out
  • 12 minutes Glory to Hong Kong
  • 15 minutes ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 33 mins Is Eating Meat Worse Than Burning Oil?
  • 2 hours Diplomatic immunity
  • 30 mins China & Coal: China's 2019 coal imports set to rise more than 10%: analysts
  • 45 mins Canada Election Deadlock?
  • 4 mins Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 15 hours Devaluing the Yuan
  • 1 day Here's your favourite girl, Tom!
  • 1 day Clampdown on Chinese capital flight is shutting down their commercial construction in US
  • 4 hours Russia Predicts The Death Of U.S. Shale
  • 8 hours Nigeria Demands $62B from Oil Majors
  • 4 hours IMO 2020:
  • 1 day Fareed Zakaria: Canary in the Coal Mine (U.S. Dollar Hegemony)
  • 8 hours The Ultimate Heresy: Technology Can't Fix What's Broken
Alt Text

The Best Thing About The Death Of Coal

Fracking has taken its fair…

Alt Text

Iran Prepares For War With Israel (Part 2)

Iran has been emboldened by…

Jess McCabe

Jess McCabe

Jess is a writer for Environmental Finance.Environmental Finance is the leading global publication covering the ever-increasing impact of environmental issues on the lending, insurance, investment…

More Info

Premium Content

Fossil Fuel Subsidies 10x Renewables Support

Worldwide renewable power and biofuels received $43 billion-46 billion in subsidies last year, only a fraction of the government subsidies for fossil fuels, according to preliminary figures from Bloomberg New Energy Finance (BNEF).

By contrast, governments propped up fossil fuels with $557 billion of subsidies in 2008, according to figures published in June by the International Energy Agency.

Such figures raise questions about the common investor worry that renewable power is only feasible with government subsidies, said BNEF chief executive Michael Liebreich. “Setting aside the fact that in many cases clean energy competes on its own merits – for instance in the case of well-situated wind farms and Brazilian sugar-cane ethanol – this analysis shows that the global direct subsidy for fossil fuels is around 10 times the subsidy for renewables,” he added.

“And that is without taking into account the enormous security and public health costs of fossil fuels, as well as the appalling pollution catastrophes on the Gulf Coast, the Niger Delta and elsewhere.”

Adding up support from feed-in tariffs, renewable energy certificates, tax credits, grants and other direct subsidies, BNEF found the US deployed the most dollars to support clean energy in 2009, with $18.2 billion. Around 40% of this went to support biofuels.

China spent $2 billion in direct subsidies, but BNEF said this figure does not include low-interest loans from state-owned banks and other methods of support. The country installed 14GW of wind capacity in 2009, making it the world leader.

The German government spent around $9.6 billion on its feed-in-tariff programme in 2009, driven by “extraordinary” numbers of photovoltaic systems installed. This was the single most expensive clean energy subsidy programme of 2009, BNEF said. Germany is one of a number of governments considering cuts to their support schemes for renewables.

By. Jess McCabe

Source: Environmental-Finance




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Anonymous on August 01 2010 said:
    Clean energy CANNOT compete on its own merits at the present time. Believing that it can is counterproductive. I was surprised though to see these figures, and I can only hope that nuclear is subsidized as freely as fossil fuels, because more nuclear is necessary in order for the clean energy to make sense.As for Germany reducing its support for renewables, I have expected this for years.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play