Heightened fossil fuel prices are a key reason for this increase as policy interventions aim to shield consumers from ballooning prices. In 2021, Russia was the largest single provider of fossil fuel subsidy payments, followed by Iran and China. In contrast, Europe and the US spent a combined USD 79 billion on renewable energy subsidies in 2021.
Incentives are set to grow through the increasing budgets of programs such as the Inflation Reduction Act in the US and the Net Zero Industry Act in Europe. While fossil fuel subsidies mostly come in the form of direct price support or lower tax rates (i.e. OpEx that incentivizes consumption of fossil fuels), renewable energy subsidies are typically CapEx, focusing on incentivizing capacity buildout. They come in the form of things like investment and production incentives, tax incentives and breaks, guarantees, favorable loans and purchase agreements.
Disclaimer
The information contained in the website is solely intended for professional investors. Some funds shown on this website fall outside the scope of the Dutch Act on the Financial Supervision (Wet op het financieel toezicht) and therefore do not (need to) have a license from the Authority for the Financial Markets (AFM).
The funds shown on this website may not be available in your country. Please select your country website (top right corner) to view more information.
Neither information nor any opinion expressed on the website constitutes a solicitation, an offer or a recommendation to buy, sell or dispose of any investment, to engage in any other transaction or to provide any investment advice or service. An investment in a Robeco product should only be made after reading the related legal documents such as management regulations, prospectuses, annual and semi-annual reports, which can be all be obtained free of charge at this website and at the Robeco offices in each country where Robeco has a presence.
By clicking Proceed I confirm that I am a professional investor and that I have read, understood and accept the terms of use for this website.
15-09-2023 · Product video
Contrasting pathways: Fossil fuel subsidies amidst renewable surge!
It may seem absurd at a time when many countries are more committed than ever to net-zero goals and building out renewable energies, that subsidies for fossil fuels have reached an all-time high. After a noticeable dip in 2020 due to Covid, preliminary estimates from the International Energy Agency show global subsidies doubled to more than USD 1 trillion in 2022.
Top keywords
