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Fossil fuels

G20 Governments Prioritize Fossil Fuels Over Renewables, Research Reveals

Strategic Insights

— 1 min read

G20 governments continue to outspend renewable energy support, allocating three times as much to fossil fuels, according to a recent inventory by the International Institute for Sustainable Development. The study highlights the urgent need for governments to scale up public financial support to accelerate the clean energy transition, with the International Energy Agency estimating that investment in the sector needs to double by 2030 to meet a global goal to triple renewable energy capacity.

Key Takeaways:

  • G20 governments spent an estimated USD 535 billion on fossil fuel subsidies in 2023, compared to USD 168 billion in renewable energy support.
  • The majority (95%) of public financial support for renewables was delivered by rich countries and China.
  • In the past 4 years, EU countries collectively invested USD 340 billion in renewables, with Germany leading the way and investing 1.04% of its GDP in the sector.
  • The United States delivered USD 140 billion and China USD 119 billion in renewable energy support.
  • Emerging economies risk being left behind in the clean energy transition, requiring governments to scale up public financial support and implement policies to address barriers to deployment.
  • Strategic support for renewables is good value for taxpayers, offering cheap, safe, and clean energy, and reducing exposure to geopolitical risk.

Statistics:

  • USD 535 billion: Estimated fossil fuel subsidies by G20 governments in 2023.
  • USD 168 billion: Renewable energy support by G20 governments in 2023.
  • 95%: Share of public financial support for renewables delivered by rich countries and China.
  • USD 340 billion: Collective investment in renewables by EU countries over 2020-23.
  • 1.04%: Share of Germany's GDP invested in the renewable energy sector.
  • USD 140 billion: Renewable energy support delivered by the United States.
  • USD 119 billion: Renewable energy support delivered by China.

Sources:

  • International Institute for Sustainable Development. (2023). G20 governments prioritize fossil fuels over renewables.
  • International Energy Agency. (n.d.). Energy Transition Outlook 2023.
  • COP 29. (n.d.). Climate finance goal.
  • United Nations. (n.d.). National Climate Plans (NDCs).

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