May 012011
By Alexander Ochs and Annette Knödler | Vital Signs, May 11, 2011
Gobal fossil fuel consumption subsidies fell to $312 billion in 2009 from $558 billion in 2008, a decline of 44.1 percent.[i] The reduction is due primarily to changes in international energy prices as well as in domestic pricing policies and demand, rather than because the subsidies themselves were curtailed. The number also does not include fossil fuel production subsidies that aim at fostering domestic supply, which are estimated at an additional $100 billion globally per year.[ii]
Fossil fuel consumption subsidies include public aid that directly or indirectly lowers the price for consumers below market price. The International Energy Agency (IEA) defines energy subsidies as “any government action directed primarily at the energy sector that lowers the cost of energy production, raises the price received by energy producers or lowers the price paid by energy consumers.”[i] Common means of subsidizing energy include trade instruments, regulations, tax breaks, credits, direct financial transfers like grants to producers or consumers, and energy-related services provided by the government, such as investments in energy infrastructure or public research.[ii] Many observers believe that fossil fuel subsidies should be phased out because they reduce the competitiveness and use of cleaner, alternative energy sources .
Please find the full article [here].
Aug 302010
- Yttrium, a rare earth element
Climate change and the secure supply of energy are among the biggest challenges of the twenty-first century. The problem is immense: While global greenhouse gas (GHG) emissions are still on the rise, they will have to be halved by the middle of this century in order to prevent the most dangerous effects of global warming. And while energy-related emissions are already responsible for the largest share of GHG emissions, global energy demand is estimated to rise by 50 percent or more between now and 2030.
Climate change and energy security can be seen as Siamese twins insofar as they can only be sustained with concern for one another: 80 percent of global energy supply is produced from fossil fuels which, in the United States, Europe, Japan and other important U.S. ally countries, are increasingly imported and therefore are at the core of their increasing energy dependence. The burning of fossil fuels also emits CO2, and energy-related CO2 emissions are responsible for about 60 percent of man-made climate change.
The security impacts of climate change and our dependence of fossil fuels have been much debated. It is in the national interest of the United States to address both issues vigorously. There has been little academic and political discussion, however, about the security impacts of a transition of our economy to one that is built on a low-carbon energy foundation. What are the foreseeable material input demands and what human capacities are needed for such a transition? This paper addresses these questions under a particular scenario in which the United States commits to GHG reductions as party to an international climate change agreement.
[Please find the full version of this draft policy paper here. Comments are highly appreciated]
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