IMF says: Fossil fuel subsidies costing global economy $2 trillion

According to the International Monetary Fund subsidies are masking the true cost of fossil fuel. “…When you factor in implicit subsidies from the failure to charge for pollution, climate change and other externalities, the post-tax cost comes in at closer to $2 trillion – equivalent to about 2.9 per cent of global GDP, or 8.5 per cent of government revenues.”

Cons of subsidies according to Sophie Vorrath:

  • Divert government resources
  • Stifle incentives for greater efficiencies and innovation
  • Government reforms might appear to be a daunting challenge

So naturally the next logical step for goverments moving towards a low-carbon environment would be “reducing or eliminating fossil fuel subsidies – and properly pricing energy to account for environmental impacts”. — Sophie Vorrath

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Vermont’s House member spoke at BuildingGreen Inc.,

U.S. Rep. Peter Welch, the author of The Energy Efficiency Improvement Act recently spoke at a BuildingGreen Inc event in Brattleboro Vermont.

Welch discussed at the event some of the highlights of the Act’s initiatives:

— A new “tenant star” certification program.

— Requires implementing strategies to increase the efficiency of federally operated data centers.

— Encourages manufacturing large-scale water heaters and incentivizes  curbing energy demand during peak hours.

Alex Wilson also was present at the event and stated, “….creating really energy-efficient homes is one way to ensure that the people in those homes will remain safe.”

 

There is a growing attention to climate change and building resiliency.  Let’s see if the Act is passed by senate.

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