Why don’t we just let it die already? Coal companies keep getting bailed out by governments around the world despite the climate crisis, this needs to stop. Over at Climate Town they have a great idea (above) that captures coal’s contentious use and how governments prop up the industry. The concept of clean coal was just a way to keep the carbon intensive industry running at the expense of all of us.
Already renewable sources are cheaper than coal and waaaaaaaaaaaay better for the planet and people’s health. It’s time to let the coal industry go the way of the knocker uppers.
Eliminating fossil fuel subsidies would save billions in revenue for the federal government. For climate advocates and budget hawks, eliminating these subsidies is a win-win. The Biden administration projected savings of $121 billion over a decade, which could be used to fund critical public health, education, infrastructure, and social initiatives instead of raising taxes.
Pricing fossil fuels efficiently would cause a dramatic decline in global emissions. The International Monetary Fund found that efficient oil, gas, and coal pricing by 2025 would lead to a 36% decline in global emissions. This puts us well on track to keep warming below 2 degrees Celsius. Current global fossil fuel subsidies reached $5.9 trillion in 2020, or $11 million every minute.
Fossil fuel companies spend public money on private lobbying. Fossil energy companies earn a greater than 13,000% return on investment while slashing thousands of jobs. In 2020, the oil, gas, and coal industries spent more than $115 million lobbying Congress in defense of their $15 billion in giveaways. Eliminating subsidies to the industry is a step toward fighting corruption and preventing the abuse of taxpayers’ hard-earned money.
Fossil fuel subsidies are economically inefficient policies. They price carbon at far below its social cost to society, and on a global scale, they are economically regressive policies that benefit the wealthiest 20%. Externalities from supporting the fossil fuel industry cost the U.S. $649 billion every year.
Ending fossil fuel subsidies is politically popular. According to polling from Data for Progress, 54% of voters are in favor of rolling back all tax incentives for fossil fuel companies, compared to only 30% opposed.