G20 countries push developing nations to scrap fossil fuel subsidy

Getting rid of fossil fuel subsidies could be one option for developing nations, which are chiefly responsible for such handouts, to reduce emissions cheaply, according to Helen Mountford, head of the Organisation for Economic Cooperation and Development’s climate, biodiversity and development division. “Phasing out fossil fuel subsidies…is one of the few options where there are win-win benefits both for the economy and the environment,” said Mountford. The G20 leaders’ statement arising from the G20 meeting in Pittsburgh, Penn., U.S.A., says, “we agreed to phase out and rationalize over the medium-term inefficient fossil fuel subsidies while providing targeted support to the poorest.” (September 27, 2009)