China, Russia, India, USA led $7trn fuel subsidy spend in 2022

Fossil-fuel subsidies soared to a record $7 trillion last year as governments including China, Russia, India, USA among others supported consumers and businesses during the global spike in energy prices caused by Russia’s invasion of Ukraine and the economic recovery from the pandemic, says the IMF.

As the world struggles to restrict global warming to 1.5 degrees Celsius and parts of Asia, Europe, and the United States swelter in extreme heat, subsidies for oil, coal and natural gas are costing the equivalent of 7.1 percent of global gross domestic product.

That’s more than governments spend annually on education (4.3 percent of global income) and about two-thirds of what they spend on healthcare (10.9 percent) according to analysts at the IMF