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Report Finds $2.6 Trillion Spent Annually on Global Subsidies That Damage the Environment – EcoWatch

“Rally to End Fossil Fuels: Environmentalists and Tax Groups Unite in Washington, DC”

Environmentalists and politically moderate tax groups gathered at the Rally to End Fossil Fuels outside the U.S. Capitol in Washington, DC on May 10, 2012. The demonstration, organized by 350.org, aimed to raise awareness about the detrimental impact of fossil fuel subsidies on the environment and global heating.

A recent report by Earth Track revealed that the world is spending a minimum of $2.6 trillion annually on subsidies that contribute to environmental destruction and fuel global heating. These subsidies, which include financial support for deforestation, fossil fuel consumption, and water pollution, hinder efforts to protect and restore nature.

One of the significant outcomes of the 2022 COP15 Convention on Biodiversity was the passage of the Kunming-Montreal Global Biodiversity Framework (GBF), which set a target of reducing environmentally harmful subsidies by $500 billion each year by 2030. However, Earth Track found that governments are still providing billions in subsidies that contradict the goals of the GBF and the Paris Climate Accord.

According to Earth Track co-founder Doug Koplow, environmentally harmful subsidies accelerate natural resource extraction, damage habitats, and contribute to pollution. The organization estimates that these subsidies amount to at least $2.6 trillion annually, equivalent to 2.5% of global GDP.

The report also highlighted the increase in fossil fuel subsidies, which surged to over $1.5 trillion by the end of 2022 due to global events such as the Russian invasion of Ukraine. This financial support for fossil fuels undermines efforts to transition to lower-impact production methods and energy systems.

Former UN climate chief Christiana Figueres emphasized the need for clearer environmental policies to address the issue of harmful subsidies. She warned that the current level of funding for destructive practices jeopardizes the chances of meeting climate and nature conservation goals.

The authors of the Earth Track report suggested that a significant portion of the $2.6 trillion in subsidies could be redirected towards policies that benefit nature and humanity. As countries prepare to convene for COP16 in Colombia, there is a call for governments to honor their commitment to the GBF and take action to eliminate environmentally harmful subsidies.

Overall, the report sheds light on the urgent need to address the issue of harmful subsidies that perpetuate environmental degradation and hinder global efforts to combat climate change. It underscores the importance of redirecting financial resources towards sustainable practices that protect nature and support a greener future for all.

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