It’s time to stop subsidizing fossil fuels

Phasing out fossil fuel subsidies is an obvious target for the world’s next development goals.

The world spends $548 billion subsidizing fossil fuels, mostly in developing countries. A disproportionate share of the subsidies goes to the middle class and the rich – after all, they are the ones who can afford a car in poor countries.

Now is the time to cut fossil fuel subsidies. Thanks to plummeting oil prices, it is easier to reduce the subsidies needed to guarantee regulated consumer prices, taking off public pressure against such reforms.

Cutting fossil fuel subsidies will help the environment by emitting less CO2. And it will help developing countries grow less unequal and will free up much needed resources for health, nutrition and education.