Inventory of estimated budgetary support and tax expenditures for fossil fuels

The International Energy Agency (IEA) and the Organisation for Economic Co-operation and Development (OECD) have jointly released a publication titled ???Inventory of estimated budgetary support and tax expenditures for fossil fuels,??? which highlights the need to reform fossil-fuel subsidies to improve the economy and environment. The report is the first of its kind, inventorying 24 countries that account for 95% of the OECD???s primary energy supply, of which petroleum made up approximately 54%. The report discusses not only the subsidies themselves, but trends and examples of good practice in reforming subsidy systems. The report highlights that approximately US$500 billion dollars were paid out in 2010 to subsidize fossil fuel production and consumption. It stresses that, although in many countries such subsidies are designed to assist the poor, they often fail to meet these goals and instead encourage excess consumption, reduce energy security, impede investment in clean energy, and undermine efforts to deal with climate change challenges.