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Earth The Almighty Buck

Just 10 Percent of Fossil Fuel Subsidy Cash 'Could Pay For Green Transition,' Report Says (theguardian.com) 312

An anonymous reader quotes a report from The Guardian: Switching just some of the huge subsidies supporting fossil fuels to renewables would unleash a runaway clean energy revolution, according to a new report, significantly cutting the carbon emissions that are driving the climate crisis. Coal, oil and gas get more than $370 billion a year in support, compared with $100 billion for renewables, the International Institute for Sustainable Development (IISD) report found. Just 10-30% of the fossil fuel subsidies would pay for a global transition to clean energy, the IISD said.

The new analysis shows how redirecting some of the fossil fuel subsidies could decisively tip the balance in favor of green energy, making it the cheapest electricity available and instigating a rapid global rollout. "Almost everywhere, renewables are so close to being competitive that [a 10-30% subsidy swap] tips the balance, and turns them from a technology that is slowly growing to one that is instantly the most viable and can replace really large amounts of generation," said Richard Bridle of the IISD. "It goes from being marginal to an absolute no-brainer." Reform of fossil fuel subsidies could have a significant impact on global heating. An earlier IISD study of 20 countries with large fossil fuel subsidies found that a 30% swap to renewables would lead to emissions reductions of between 11% and 18%.
"Most experts define fossil fuel subsidies as financial or tax support for those buying fuel or the companies producing it," the report says. "The IMF also includes the cost of the damage fossil fuel burning causes to climate and health, leading to an estimate of $5.2 trillion of fossil fuel subsidies in 2017, or $10 million a minute. Ending the subsidies would cut global emissions by about a quarter, the IMF estimates, and halve the number of early deaths from fossil fuel air pollution."
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Just 10 Percent of Fossil Fuel Subsidy Cash 'Could Pay For Green Transition,' Report Says

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  • by Kohath ( 38547 ) on Thursday August 01, 2019 @10:52PM (#59026808)

    This one says ten percent of a made up number is enough to cover another made up number representing an expense.

    So we should celebrate? We should pretend the numbers are real and get mad that mean people don't make the one number lower to pay for the other one?

    How credulous and emotionally malleable are we supposed to be? Does anyone actually believe this stuff or are you all playing along?

  • by cirby ( 2599 ) on Thursday August 01, 2019 @10:56PM (#59026820)

    In most of the countries they're talking about, the "subsidy" is calculated by taking the amount the government-owned oil companies charge their own citizens and comparing it to international oil prices. So places like Venezuela (before their economy crashed) were selling gasoline to the people at ridiculously low prices to help keep them content and prevent revolution. That didn't work, of course.

    Other places, like the Middle East oil producers and the US, have low prices because they don't have to ship it anywhere, and are below the cost the OECD thinks should be charged...

    In a lot of other places, the OECD takes the view that, if a country isn't charging enough tax when compared to everyone else, that counts as a subsidy - even though it's not really any such thing.

    This is a lot like the US "fossil fuel subsidies," where they count things like oil sales to the Strategic Petroleum Reserve at market prices as "subsidies," and also include plain old tax deductions in the same category.

  • by CaffeinatedBacon ( 5363221 ) on Thursday August 01, 2019 @11:05PM (#59026832)

    Take it with a pinch of salt.

    They take tax breaks and investment incentives that all business use. Then claim they are 'fossil fuel subsidies'. No shit they receive large subsidies, they are large businesses.
    Green companies can get the identical subsidies and tax breaks, but the numbers are smaller because the companies are smaller. Nothing to see here.

    This is completely separate from not counting all the negative externalises of the fossil fuel industry. But it's disingenuous to frame them in the same way.

    • by gtall ( 79522 )

      "But it's disingenuous to frame them in the same way." No it isn't, try charging the oil companies because your city is getting flooded, see Miami for details.

  • by Rick Schumann ( 4662797 ) on Thursday August 01, 2019 @11:26PM (#59026880) Journal
    Shift some of that money to R&D into better, intrinsicly safer fission power plants, and while you're at it, shift some of it into accelerating fusion R&D.
    • by blindseer ( 891256 ) <blindseer@noSPAm.earthlink.net> on Friday August 02, 2019 @01:52AM (#59027168)

      Shift some of that money to R&D into better, intrinsicly safer fission power plants, and while you're at it, shift some of it into accelerating fusion R&D.

      By R&D do you mean that for once we see some full scale and operational prototypes? We can keep funding the computer simulations and laboratory scale models but that's not getting us any where. These simulations and models need real world data to work from and that cannot come from anything other than a full scale prototype.

      I remember this same debate come up with nuclear weapons testing not terribly long ago. There were people protesting the resumption of tests, asking why they didn't just do computer simulations instead. The answer was simple, the simulations are only as good as the data, and they cannot get data from anything other than a real world test.

      The US federal government has been putting a lot of money into fusion research, maybe not enough but they have given money. I don't recall anyone demanding an explanation for the funding of prototypes on this. Or funding for prototypes of windmills or solar PV cells. We can research all we like but development means we actually...

      BUILD THINGS!

      We can't build anything close to the perfect nuclear fission power plant until we build at least 20 imperfect ones. We built a lot of very nice nuclear power plants 40 and 50 years ago so anything we build today should be at least as good.

      • by AmiMoJo ( 196126 )

        By R&D do you mean that for once we see some full scale and operational prototypes?

        Probably not, no. We did try that in the past, it didn't work very well. Lots of expensive accidents and ideas that turned out to be dead ends. Much better to do computer simulations before throwing billions of dollars at something that history suggests has a very high probability of becoming a white elephant.

        We built a lot of very nice nuclear power plants 40 and 50

        Not really. The ones with very conservative designs were okay-ish, assuming they were run properly, but at that time there were a lot of experimental plants, new ideas that didn't pan out and some that

    • by AmiMoJo ( 196126 ) on Friday August 02, 2019 @03:14AM (#59027392) Homepage Journal

      Nuclear has had decades of subsidised research. 70+ years of it.

      It's always "if we just had a bit more" but all these experimental wonder reactors always turn out to have major, expensive flaws. At this point it's just throwing good money after bad.

      • by blindseer ( 891256 ) <blindseer@noSPAm.earthlink.net> on Friday August 02, 2019 @03:28AM (#59027432)

        Nuclear has had decades of subsidised research. 70+ years of it.

        It's always "if we just had a bit more" but all these experimental wonder reactors always turn out to have major, expensive flaws. At this point it's just throwing good money after bad.

        Bullshit. Nuclear hasn't had 70+ years of subsidized research because there was a 40+ year span of time where no new nuclear power plant was built. That's like saying we did 70+ years of research in astronomy by looking at the same photographs for 40 years instead of building new telescopes and taking new photos.

        Do we do automotive research by looking at the 1972 Ford Pinto over and over again? No, we build new car models every year. It's not research if we don't...

        BUILD THINGS!

        Here's an idea. Let's not allow wind and solar to build anything new for 40 years and see how that turns out for everybody. They can do all the "research" they want so long as they build nothing new.

        • by AmiMoJo ( 196126 )

          40+ year span of time where no new nuclear power plant was built

          In the US perhaps, but even that seems doubtful. What years are you talking about?

          • In the US perhaps, but even that seems doubtful. What years are you talking about?

            1977 to 2016, my mistake on that being 40+ years as it was really only 39 years. Please forgive my "hyperbole".

            https://www.treehugger.com/cor... [treehugger.com]

            The last two power plants to be built in the US were the Watts Bar plant, which began construction in 1973, was completed in 1990, and didn't begin commercial operation until 1996, and the River Bend plant, which was built in 1977 and went online in 1986.

            https://www.timesfreepress.com... [timesfreepress.com]

            The Tennessee Valley Authority is refueling America's newest nuclear reactor after its first production cycle of nearly 17 months of power generation.

            This is hardly a "new" reactor. The second unit completed was a near identical copy of the first unit that had ground breaking in 1973. This "new" reactor is the best technology the 1960s had to offer.
            https://en.wikipedia.org/wiki/... [wikipedia.org]

          • by Zocalo ( 252965 )
            It's not even close to true for the US, let alone the entire world. [wikipedia.org]. The US had reactors go operational in every decade from the 1950s through to the 1990s (Comanche Peak 2 in 1993). That was followed by Watts Bar 2 in 2016, so the longest interval for the US is actually 23 years. RoW has a new reactor going operational every decade since the 1950s, no exceptions.
        • to do research? We don't do automotive research by building 100,000 cars. We build a few concept cars, people laugh at most of them and a few make it.

          As far as I know we're still building small test reactors for new tech. Maybe not as much as folks want, but science has been massively underfunded for decades after the push for tax cuts started in the 80s. We used to have a kind of "use it or lose it" tax system where profits after 20 million or so not re-invested went to the government who then invested
  • I looked up 2016 total government subsidies of all kinds https://www.eia.gov/analysis/r [eia.gov]... and for the 2018 US energy production mix https://www.eia.gov/energyexpl [eia.gov]... both from the US Department of Energy, a branch called the "US Energy Information Administration".

    Biomass: $1.7 subsidy per million BTU generated
    Natural gas, crude oil, coal, nuclear, wind+solar+geothermal: $1 subsidy per million BTU generated
    Hydro: $0.7 subsidy per million BTU generated

    It seems like renewables already get roughly the same tot

    • Re: (Score:2, Troll)

      by rtb61 ( 674572 )

      Fossil fuel gets a free to pollute as much as they want subsidy, renewable do not. What right do you claim to pollute the air I breathe when an alternate is available regardless of cost.

      Fossil fuel, free to poison every one on the planet subsidy. Fossil fuel free to cause climate change with trillions in damages subsidy. Yeah, they get a whole bunch more subsidies than renewable, a insane amount more, apparently including the right to pollute the air every human on the planet breathes.

      Think it is OK, why d

    • by AmiMoJo ( 196126 )

      Both your links are 404, looks like a copy/paste error. I wanted to see if they include things like the cost of healthcare to deal with the pollution from fossil sources, which is a massive subsidy.

      How can they calculate the subsidy for nuclear? The unlimited liability insurance provided by the government is literally priceless. The nuclear subsidy is $infinity per million BTU generated.

      There is a huge difference between subsidies for established energy sources like fossil and nuclear, and subsidies for rap

  • Solar and Wind are already cheap enough to compete, the only problem is their intermittency. (There are solutions but they are either ridiculously expensive or still theoretical). Once the intermittency problem is solved then the 'free market' will take care of the rest.
    • Their intermittency is a significant problem, making their levelized cost differ dramatically from their geometrically increasing deployment cost. This is due to them more often overproducing during good times, which either has to be curtailed or stored in batteries that are an order of magnitude too expensive to act as base load; and underproducing during bad times, which means that all the current base load capacity (coal, gas, nuclear) still has to be maintained.

      We need good-enough solutions now, not in

  • Wrong, again... (Score:4, Insightful)

    by drik00 ( 526104 ) on Friday August 02, 2019 @03:33AM (#59027448) Homepage

    Oil companies (at least in the US) don't receive ANY money from the federal government. Look it up. This "fossil fuel subsidies" bullshit never goes away even though its a complete lie.

    If you own a business (again, in the US, not speaking otherwise), you get to deduct certain costs, typically expansion related activities, R&D etc. In the oil and gas industry this is basically drilling and exploration. So the only "subsidies" that the oil industry gets is the same deductions that any other business in and other industry receive. The only way you could change this is to remove the tax deductions across the board for every business in the US, which would probably cause the economy to go into free-fall. According to US law (IIRC BC IANAL), it would otherwise be illegal for Congress to pass a law punishing any one given industry over another.

    As much as I *loathe* the combination of these two words in print in general, this is the epitome of "Fake News."

    • Re: (Score:2, Troll)

      We spent about $6 Trillion over 10 years in Afghanistan and Iraq for gas and oil procurement -- how much of a subsidy are you looking for?

      • Most of that Iraq oil goes to Asia and the EU - we should bill them for it.
    • Re:Wrong, again... (Score:4, Insightful)

      by eriks ( 31863 ) on Friday August 02, 2019 @07:34AM (#59027926)

      What's all this then:

      https://www.eia.gov/analysis/r... [eia.gov]

    • Re:Wrong, again... (Score:4, Interesting)

      by bazorg ( 911295 ) on Friday August 02, 2019 @07:36AM (#59027938)

      This "fossil fuel subsidies" bullshit never goes away even though its a complete lie.

      Partial lie, IMHO.
      If we don't add environmental damage and military protection as costs on the fossil fuel tab, then yes, it must be cheaper than changing to alternative energies.

      If we are using the word "subsidies" in a strict sense, which I think was the purpose of the article, then yes I am persuaded by your argument. However (and still only IMHO), the environmental damage and military protection costs are significant enough to warrant a change in strategy.

      • by gtall ( 79522 )

        Now, now, protecting Saudi Arabia has allowed them to, get this, change their laws so that their women of over 21 yrs can now get passports and travel WITHOUT permission from a male guardian. Before you rejoice in their new found liberation, we must also recognize that there is no rule of written law in Saudi Arabia, it is oral law mostly derived from the Koran where all laws are deemed to originate. Very convenient loophole for the autocratically minded. Why, before you know it, they'll change the laws aga

    • which by all accounts is in the trillions.

      Something else that nobody ever seems to talk about is that the oil was in the ground for centuries before we decided who "owns" it. This is a once in a million years bonanza. Go read the Ring World books by Larry Niven that talk about a civilization on artificial ring worlds. One of the plot points is that the civilizations can never advance because they lack the natural resources we have.

      What I guess I'm saying is this: It's odd that the people who get to
      • Go read the Ring World books by Larry Niven that talk about a civilization on artificial ring worlds. One of the plot points is that the civilizations can never advance because they lack the natural resources we have.

        Or the Mote saga, where the Moties are stuck in an endless cycle because of resource scarcity in their home system, for that matter.

        remember leaded gas? Got Asthma?

        Yep. Yep.

      • and what it's doing to ground water. Again, forget about the Save the Whales crap. We're shitting in our own backyards, and the cleanup is going to make Super Fund sites look cheap.
  • by sabbede ( 2678435 ) on Friday August 02, 2019 @07:33AM (#59027922)
    It says right there that they are including an estimate of presumed health and climate effects as a subsidy! Estimates of assumed external costs are not subsidies. Not even close.

    Part of the problem is that the IMF is inventing a new definition of "subsidy". One that has no relationship with the actual meaning of the word.

    Here's how a dictionary will define subsidy:

    "a sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive."

    Here's how the IMF is redefining it so that they can cite however much money they want:

    "fuel consumption times the gap between existing and efficient prices (i.e., prices warranted by supply costs, environmental costs, and revenue considerations)"

    So, (total consumption)*(market price - what someone wants fuel to cost) = total nonsense because one of the factors is made up.

    Here's an article explaining what exactly the "subsidies" are in the US. https://www.forbes.com/sites/d... [forbes.com]

    • To nitpick, that is actually not how a dictionary would define subsidy. Your definition seems to be a direct quote from the news article: https://www.clickondetroit.com... [clickondetroit.com]

      You are however correct that any common dictionary (that I could find at least), includes a direct monetary transfer.

      But adding to that, a subsidy has in usage come to include more than actual money transfers, one example being tax breaks. Examples of such usage can be found concerning disputes of unfair trade. https://www.investopedia.com [investopedia.com]

    • It says right there that they are including an estimate of presumed health and climate effects as a subsidy! Estimates of assumed external costs are not subsidies.

      You're right. They are not subsidies.

      Not even close.

      You're wrong. Permitting an industry to knowingly push the cost of these externalities off onto others is an effective subsidy.

  • It's $15 billion, and falling [eia.gov]. You're going to revamp the entire energy sector for $1.5 billion a year?

Some people manage by the book, even though they don't know who wrote the book or even what book.

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