G20 To Phase Out Fossil Fuel Subsidies

The G20–a group of leaders representing the world’s largest economies–last week agreed to phase out subsidies for fossil fuels in the "medium term."

U.S. President Barack Obama backed the proposal at the meeting held in Pittsburgh, PA.

Global subsidies for fossil fuels are in the neighborhood of $300 billion annually, according to a Reuters report. These subsidies keep the cost of oil and coal lower, increasing their cost advantage over cleaner, renewable energy sources.

If the subsidies are eliminated by 2020, global greenhouse gas emissions could be cut by about 10% by 2050, the G20 leaders said.

Read the full report at the link below.