In a recent article from Bloomberg, the International Energy Agency reports subsidies given to fossil fuels are six times more than those for renewable energy. As a result, the enormous subsidies awarded to fossil fuels are creating a market distortion where the costs are greatly outweighing the benefits.
G-20 nations spent a $160 billion supporting the production of fossil fuels and its consumption last year alone. To continue spending on an increasingly inefficient fuel source will only further set the US back in becoming an energy independent nation.
Though aid for renewable energy projects rose 10 percent, the US faces significant hurdles building a competitive energy market if fossil fuels continue to receive large government subsidies. Whereas Europe and China are making strides in building competitive renewable energy markets, at the current pace, the IEA predicts the US renewable energy market will need aid until at 2035.
To read more about International Energy Agency’s report, click here.Permalink + Share This