to release one million barrels a day from the US government's strategic reserves for the next six months. In Europe, which has been hit much harder by the fallout from the war because of its heavy reliance on Russian natural gas, the talk is not just of more nuclear energy but also of
The standard way to measure government support for fossil-fuel production or consumption is to look at direct budgetary transfers and subsidies, as well as tax breaks for the sector. Using this method, the OECD and the International Energy Agencythat governments across 52 advanced and emerging economies—accounting for about 90% of global fossil-fuel energy supply—provided fossil-fuel subsidies worth an average of $555 billion per year from 2017 to 2019.
Those fears were more than borne out. It turned out that the bleakest estimates massively understated the actual fossil-fuel subsidies that governments provide. In a recent Under both methodologies, India is a heavy subsidizer of fossil fuels—although lower-income countries can be partly excused, given the high cost of the green-energy transition. But other countries' rankings change in interesting ways when implicit subsidies are considered. Russia was the largest provider of explicit fossil-fuel subsidies, but the US—with an estimated $662 billion of implicit subsidies in 2020 and nearly $800 billion in 2021—extends significantly more subsidies overall.
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