Subsidies for fossil fuels dropped sharply last year, but are likely to rebound

·1 min read

Reproduced from IEA; Chart: Axios Visuals

An International Energy Agency analysis shows that subsidies for consumers' use of gasoline, diesel and other fuels dropped sharply last year — but are headed for a rebound.

Why it matters: The IEA and many policymakers say phasing out subsidies is a tool for combating climate change.

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The big picture: The pandemic-driven collapse in fuel demand and prices dropped the aggregate value greatly last year.

  • But IEA said rebounding prices and use, alongside "hesitant progress on pricing reforms," will likely push them back up this year.

  • "This is a worrying trend at a time when countries need to be redoubling efforts to accelerate energy transitions," it notes.

How it works: The tally above looks at consumption subsidies for oil, power, gas and coal. The top five countries are Iran, China, India, Saudi Arabia and Russia.

Go deeper: Read the IEA commentary

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