Eradication of Fossil Fuel Subsidies: IEA

The International Energy Agency has said that the extermination of the fossil fuel subsidies would augment the global economy, environment and energy security. He was said to be referring to the pledge made by G20 countries.

Phasing out of the inefficient fossil fuel subsidies which are said to have supported wasteful consumption too was very important as committed by the G20 leaders in Pittsburgh in 2009.

IEA, the energy watchdog to 28 industrialized countries, in its annual set-piece World Energy Outlook said "Eradicating subsidies to fossil fuels would enhance energy security, reduce emissions of greenhouse gases and air pollution, and bring economic benefits".

Some update is due to be provided in the G20 meeting in Seoul this week on fossil fuels. In comparison to the $57 billion in subsidies for renewable energy, the reports are said to have made an estimation of subsidies at $312 billion in 2009, mostly in developing countries.

Carbon emission was likely to lessen by 6% together with a cut in the global energy demand by 5%, if there was elimination in the fossil fuel consumption subsidies by 2020.

In order to keep a check on the damage caused by greenhouse gas emissions, the economists say that there is a need for the Government to support low-carbon energy alternatives.