Enigin Update - Fossil Fuel Subsidies Need to be Replaced by Energy Efficiency
CONCERN is growing over the amount of fossil fuel subsidies being provided by governments, particularly in the developing world, and the affect it is having on climate change and when energy efficiency could fill the gap in the increasing demand for energy.
The International Energy Agency (IEA) have published the results of survey into fossil fuel use in 2008. The results revealed that in 37 large developing nations a total of $557 billion in energy subsidies and represented a rise of $214 billion from 2007.
The IEA wants to see a phasing out of these subsidies over the next 10 years so as to reduce greenhouse gases.
The survey also estimates that without these subsidies energy demand would actually fall by 5.8 per cent and CO2 emissions would reduce by 6.9 per cent.
IEA chief economist Pharih Birol told the website GreenWise that phasing out these subsidies was a "win-win-win solution," stating:
"Energy consumption will be reduced, CO2 emissions will be substantially reduced and it will increase energy efficiency."
The subsidies are often turned to provide reduce energy costs to consumers and particularly industry, but energy efficiency can not only reduce demand but will also reduce the potential cost to businesses and industry.
Encouragement comes from positive signals from China, Russia and India who are looking to pursue a reduction in these subsidies.
The survey will be discussed at the G20 summit in Toronto later this month and will also be useful for the 'World Energy Outlook 2010’ report to be published late this year.
Enigin Distributors can let industry, commerce and the public sector know how they can help them reduce energy demand, save money and help the environment with Enigin's energy saving solutions, reducing the reliance on fossil fuels.
