Energy Subsidy Reform
In 2017, about US$300 billion was spent on fossil fuel subsidies globally — nearly six times the amount required to achieve universal access to electricity and clean cooking by 2030.
Often, energy subsidies disproportionately benefit higher income groups, while diverting public funds that could otherwise be invested in health, education, and infrastructure. They also undermine global efforts to reach the climate change goals as 13% of global CO2 emissions has been linked to the use of subsidized fossil fuels for consumption.
Subsidy reform can level the playing field for renewable energy. It can also create incentives for investment in energy efficiency by sending the right price signals. All these factors are critical for achieving access to energy for all.