Every dollar spent on energy transition would pay off up to seven times.
When it comes to tackling the climate crisis, ending $400 billion in annual subsidies to the fossil-fuel industry worldwide seems like a no-brainer.
In 2018, however, a group of researchers questioned the magnitude of the climate benefits of subsidy reform, reporting that their simulations showed its effect would be “limited” and “small.” Stories in the press began asking whether such subsidies are such a big deal after all.
We think this is wrong.