Scrapping Fuel Subsidies Can Help Climate - UN Study
Abolishing subsidies on fossil fuels could cut world greenhouse gas emissions by up to 6 percent and also nudge up world economic growth, a UN report showed on Tuesday. Subsidies on oil, gas or coal are meant to help the poor by lowering the price of energy but the report, issued on the sidelines of a 160-nation UN climate meeting in Ghana, said they often backfired by mainly benefiting wealthier people. The study estimated that energy subsidies, almost all for fossil fuels, totalled about US$300 billion a year or 0.7 percent of world gross domestic product (GDP).