Categories: News

‘Trillions Squandered On Subsidy Could Be The Planet’s Lifeline’ – World Bank Reveals

  • Trillions of dollars wasted on subsidies for agriculture, fishing, and fossil fuels could have addressed climate change, according to the World Bank.

  • Governments spend $1.25 trillion annually on these sectors, six times more than their Paris Agreement commitment.

  • Repurposing these subsidies can tackle global challenges and create a better future.

EKO HOT BLOG reports that the World Bank said trillions of dollars wasted on subsidies for agriculture, fishing and fossil fuels could have been used to address climate change, which harms people and the planet.

A new report, “Detox Development: Repurposing Environmentally Harmful Subsidies”, noted that spendings on the three sectors by governments reached $1.25trillion a year.

EDITOR’S PICKS

To subsidize fuel consumption, countries spend about six times what they pledged to mobilize annually under the Paris Agreement for renewable energies and low-carbon development.

World Bank Senior Managing Director, Axel van Trotsenburg said though people think there isn’t money for climate change, there is but just “in the wrong places”.

“If we could repurpose the trillions of dollars being spent on wasteful subsidies and put these to better, greener uses, we could together address many of the planet’s most pressing challenges,” Trotsenburg added.

Government subsidies of $577billion in 2021 to lower the price of polluting fuels such as oil, gas, and coal, exacerbate climate change and cause toxic air pollution, inequality, inefficiency and debt burdens, the report notes.

It assesses the impact of implicit subsidies, about $6trillion annually, representing the costs on people and the planet from pollution, greenhouse gas emissions, road congestion, and the destruction of nature.

The World Bank says direct subsidies for agriculture – more than $635 billion a year – are driving the excessive use of fertilizers that degrade soil and water and harm human health.

Furthermore, subsidies for products such as soybeans, palm oil, and beef cause farmers to push into the forest frontier and are responsible for 14 percent of forest loss every year.

The institution is displeased about how the burning of oil, gas, and coal causes 7 million premature deaths a year around the world through the bad air that people must breathe.

The Sustainable Development Practice Group’s Chief Economist, Richard Damania, said with planning, repurposing subsidies can provide more resources to give people a better quality of life and to ensure a better future.

FURTHER READING

“Much is already known about best practices for subsidy reform, but implementing these practices is no easy feat due to entrenched interests, challenging political dynamics, and other barriers,” Damania stressed.

Click to watch our video of the week

Praise Ben

"I am a writer and designer, blending words and visuals to craft compelling narratives and experiences"

Share
Published by
Praise Ben

Recent Posts

NNPC Unveils Command Centre for Real-Time Monitoring of Hydrocarbon Operations

Centralized Data and Enhanced Tracking: NNPC's Strategy to Revolutionize the Energy Sector Mele Kyari’s Has…

1 minute ago

ATCON Urges FG to Tackle Infrastructural Barriers Hindering Broadband Expansion

ATCON Highlights Systemic Challenges as Nigeria's Broadband Goals Loom Broadband: Telecoms Firms Task Govt With…

25 minutes ago

Nollywood Actress, Kiitan Bukola Opens up On What Influenced Her Perspective About Marriage

Bukola Kiitan, Says She Grew Up Without a a Father  I've Had No Experienced of…

52 minutes ago