World Bank Report Says Fight Climate Change With Subsidy Reform
September 20, 2011
A draft paper by the World Bank recommends raising money to fight climate change by reducing subsidies for fossil fuels, putting a price tag of US$ 25 per tonne on carbon emissions and collecting a surcharge on aviation and shipping fuels, reports Bloomberg and The Guardian. The leaked World Bank documents propose that developed countries should eliminate the US$ 50 billion a year they give in fossil-fuel subsidies, in order to financially help poor countries address climate change. The Mobilizing Climate Finance paper is to be considered by the G-20 finance ministers in November.