Austria should reduce fossil fuel subsidies in the future. Finance Minister Magnus Brunner (ÖVP) joined a similar Dutch initiative during the World Climate Conference in Dubai. This first wants to create an overview of the extent of climate-damaging subsidies.
Concrete actions must then be derived from this. According to calculations by the International Monetary Fund (IMF), seven trillion dollars (equivalent to 6.5 trillion euros) in government subsidies flowed to coal, oil and gas worldwide last year. This corresponds to eight percent of global economic production. The IMF and the World Bank also take into account so-called environmental impacts such as the costs of air and environmental pollution. Without this amount, global fossil fuel subsidies amount to well over a trillion dollars, as the International Energy Agency (IEA) has calculated.
In Austria there are more tax benefits
However, in Austria and other industrialized countries there are hardly any direct subsidies or subsidies for fossil fuels. “The vast majority is hidden in tax benefits, that is, in indirect subsidies,” says Wifo economist Daniela Kletzan-Slamanig. However, tax relief for fossil fuels would amount to giving up revenue for the state. It also means that alternative energies need to be promoted even more. “If fossils are artificially cheap, I need to promote renewables even more to offset the disadvantage.”
According to an analysis by the economic research institute Wifo, the Austrian state awarded 4.1 to 5.7 billion euros in climate-damaging subsidies annually between 2016 and 2020. Among the highest indirect subsidies for fossil energy are travel allowances and diesel privileges.
“When energy prices were very high, relief was needed – but any reduction in energy costs through these measures naturally also meant a reduction in the incentive to save energy and become more efficient,” the economist said. It is recommended, among other things, to make the support for commuting more ecological and to increase the diesel tax.
Similarities already exist
In addition to Austria, Antigua and Barbuda, Belgium, Costa Rica, Denmark, Finland, France, Ireland, Canada, Luxembourg and Spain have also joined the Dutch initiative. In fact, agreements already exist, for example from 2009 and 2021.
The World Climate Conference in Dubai was actually supposed to end on Tuesday, but was extended (see video above).
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
