subsidies

Wed, 2011-09-21 14:06Farron Cousins
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Global Financial Leaders Recommend Cutting Fossil Fuel Subsidies

Global financial institutions including the International Monetary Fund and the World Bank have released a new set of recommendations for G20 countries to meet their goal of providing $100 billion a year in aid for developing nations to combat climate change. In addition to calls for charges on carbon emissions and higher prices for carbon-intensive fuels, the financial experts said the first source of funding should come from redirecting fossil fuel subsidies.

In a move that will surely leave the dirty energy industry in a fit of rage, global economists said that fossil fuel subsidies should be cut and redirected towards helping developing nations fight climate change. The total amount spent on industry subsidies for G20 countries is currently $60 billion a year, more than half of what the countries have pledged to spend per year on climate initiatives and renewable energy projects.

From The Huffington Post:
  

The draft paper says the starting point should be a review of fossil fuel subsidies, amounting to $40 billion to $60 billion a year. But many of those subsidies are handed out in poor countries, where people living on the edge of subsistence need help, for example, to buy cooking gas. Still, subsidy reforms in industrialized countries and emerging economies could contribute $10 billion a year to a climate fund, it said.
Fri, 2011-07-29 15:38Brendan DeMelle
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EIA's Politically Dictated “Garbage” Subsidy Report Obtained And Released Publicly

The Checks and Balances Project has obtained a copy of the controversial Energy Information Administration report that was called “garbage” by EIA Acting Administrator Howard Gruenspecht.  The polluter-friendly report was just delivered yesterday afternoon to the GOP House requesters, Reps. Jason Chaffetz (R-UT), Congresswoman Marsha Blackburn (R-TN) and Congressman Roscoe Bartlett (R-MD). Checks and Balances provided a copy to DeSmogBlog, which we’re providing to the public here: “Direct Federal Financial Interventions and Subsidies in Energy in Fiscal Year 2010” [PDF].

Gabe Elsner, Deputy Director of the Checks and Balances Project, told DeSmogBlog that, “if it’s true that the Acting Administrator Gruenspecht called this report a “piece of garbage” he was right, because it deliberately leaves out the six other ways in which coal, oil and natural gas get government handouts.  The fossil fuel welfare tab is tens or hundreds of times greater than the cost of pro-renewable policy support.” 

Thu, 2011-07-28 20:14Brendan DeMelle
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EIA Head Objected to Politically Dictated “Garbage” Subsidy Report, But Delivers it Anyway

Stephen Lacey from ClimateProgress on Tuesday detailed a letter sent to the Energy Information Administration (EIA) by three GOP House members asking the EIA to use loaded assumptions in running its models to show that fossil fuels are a better taxpayer investment than renewable energy sources.

These members, each of whom has received campaign funding from fossil fuel interests, essentially requested a report designed to suggest that renewables get huge public subsidies (they don’t) and that government handouts to fossil fuels and nuclear energy are a better deal for taxpayers (they aren’t). It was a blatant attempt to defend oil industry subsidies, and it put EIA in the unenviable position of lending its credibility to the talking points used by the oil, gas and coal industries.
 
Lacey reported that in a rare moment of sanity in Washington, the report was halted before it was turned over to the GOP requestors. Lacey’s report says that EIA cited “quality assurance” concerns, and would revisit the report to ensure it gives a “full picture,” accurate account of energy subsidies, not a politically driven result.
 
But “quality assurance” was the kindest way to portray what really happened.

Mon, 2011-06-20 09:57Farron Cousins
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Paul Ryan Lies About Ending Oil Subsidies To Protect His Family’s Cash Bonanza

Representative Paul Ryan (R-WI) has been all over the place when it comes to ending the multi-billion dollar subsidies that the oil industry receives every year. While he has publicly admitted that he is in favor of ending this “corporate welfare,” and his staff has claimed that his budget plan actually calls for an end to oil subsidies, the truth is that Rep. Ryan would never end oil subsidies because he makes a lot of money keeping the welfare spigot open.

The oil industry currently receives $4 billion in subsidies from the federal government, and receives more than $4.4 billion in tax breaks every year, bringing their total government handouts to more than $8 billion every year. Some estimates actually put the total number closer to $35 billion a year.

According to a new report by Joe Romm at Climate Progress, Paul Ryan and his family have a financial stake in some of the companies that receive these oil subsidies.

Wed, 2011-04-13 17:20Mike Casey
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Gambling when we don’t have to

Two weeks ago, I visited the office of a friend of mine, a partner at a top cleantech Silicon Valley law firm. He and I shared a concern about the increasingly hostile, anti-clean energy propaganda from dirty energy-funded critics who are trying to position clean energy as expensive, subsidy-dependent, and “not ready.” The good news, my friend said, was that he’s increasingly hearing from cleantech executives and investors concerned about these growing attacks on their investments. The bad news was that many of those concerned don’t connect the attacks with the dirty energy money that’s funding them.

Now what cleantech needs to hear is, ‘No more Mr. Nice Guy’,” he told me. “These [dirty energy] guys are out to kick our butts, and they will if we let them.”

I think my friend is right. However, after attending last week’s Bloomberg New Energy Finance Summit, I think there’s a ways to go before enough cleantech players see that dirty energy is using media and government to protect its capital investments and decades-long feeding at the public trough.

Wed, 2011-03-09 11:05Farron Cousins
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Congress Seeks to End Billions in Subsidies for Oil Companies

As both oil industry profits and gas prices continue to rise, Congressman Bruce Braley (D – IA) believes that it is time to end the billions of dollars worth of subsidies that the United States hands out to oil companies on an annual basis. In his proposed Clean Energy Jobs bill, Braley would end the tax breaks and other subsidies that flow to the oil industry, and use that money instead to create clean energy jobs, invest in biofuel production, and pay down the national debt.

These oil industry subsidies are nothing to scoff at. In 2005, then-President George W. Bush authorized a total of $32.9 billion worth of new subsidies for the industry over five years, bringing the annual total of their subsidies to a staggering $39 billion. The new subsidies were put in place at a time when Americans were paying the highest price for gasoline at the pump in history, which coincided with the largest oil company profits to date.

Mon, 2011-02-21 06:13Mike Casey
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Top EIA Energy Trends Watcher Agrees: We Do Not Count Damage to Public Property in Price of Fossil Fuels

Scaling Green recently wrote about the insights shared by energy trends analyst Chris Namovicz of the U.S. Energy Information Administration (EIA), who spoke at our “Communicating Energy” lecture series recently, and his comments regarding the lack of a definitive count on fossil fuel subsidies in this country. Today, we return to Namovicz’s lecture, this time to ask him about the economics of fossil fuel companies’ exploitation of resources on public property.

Here’s our question:

Their price drops in part because we’re not charging them to ruin public property. I mean, we basically are letting them contaminate water, we don’t charge them for that, and they don’t have to pay it. Your assumptions don’t include any price we would impose on them for hurting public waterways, is that accurate?

Tue, 2011-02-15 09:46Mike Casey
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Top EIA Energy Trends Watcher: No Definitive Count on Dirty Energy Welfare

The national conversation about wasteful welfare for highly profitable dirty energy corporations has gone from the dramatic statement by the Chief Economist of the International Energy Agency that fossil fuel subsidies are one of the biggest impediments to global economic recovery (“the appendicitis of the global energy system which needs to be removed for a healthy, sustainable development future”), to a speech by Solar Energy Industries Association President Rhone Resch (in which he called the fossil fuel industry “grotesquely oversubsidized”), to a call by President Obama to cut oil company welfare by $4 billion. Not to be outdone, House Democrats are now calling for a $40 billion cut.

Dirty energy welfare defenders have, predictably, responded with ridiculous, Palin-esque denials of reality, but the voter demands that wasteful spending be cut begs the question: just how much of our tax money is going to ExxonMobil, Massey, etc.? With the new deficit hawks in Congress going after insignificant items like bottled water expenses, you’d think they’d want to know the size of the really wasteful stuff, right?

Sun, 2011-02-06 02:48Mike Casey
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How the Other Guys Play

Americans want deficits cut , and there is a new set of leaders in Congress who committed themselves last year to cutting wasteful government spending. And, while over 70 percent of Americans are unaware how much of their money is given in welfare checks to highly profitable dirty energy companies, when they find out, only 8 percent want it to stay that way.

After President Obama’s State of the Union address calling for a modest cut of just $4 billion in welfare for oil companies, the focus on this insanely wasteful spending has intensified. It’s the right proposal, but one that will encounter very stiff resistance for entrenched interests that still very much enjoy their century-long stay in the government incubator of tax breaks, subsidies, cheap access to public property, forgiveness for wrecking that property, and little meaningful oversight.

Thu, 2011-01-13 09:58Mike Casey
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Job for the New Congress: Read the Latest Review of Wasteful Welfare for Dirty Energy

The new Congress roared into Washington this week with what it sees as a mandate to cut government spending. Required reading for all its new members should be Washington Monthly’s excellent new piece, “Get the Energy Sector off the Dole.” And, if you work in, invest in, or support scaling the clean economy, this important piece is worth your time to read as well.

America’s clean energy advancements are under a concerted propaganda and lobbying attack, underwritten by the dirty energy lobby, which wants Americans to think that clean energy is too “expensive,” or “dependent on subsidies.” Cleantech needs your help to get the laugh track going on such claims, and this article can equip with you the foundation for doing that.

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