Subsidies
Table of Contents
Introduction
This page focuses on Subsidies because the most harmful of them affect every living thing on the planet. Reforming these could have the greatest impact towards saving the planet with the least effort from humanity.
Subsidies
"Subsidies are intended to protect consumers by keeping prices low, but they come at a substantial cost. Subsidies have sizable fiscal consequences (leading to higher taxes/borrowing or lower spending), promote inefficient allocation of an economy’s resources (hindering growth), encourage pollution (contributing to climate change and premature deaths from local air pollution), and are not well targeted at the poor (mostly benefiting higher income households). Removing subsidies and using the revenue gain for better targeted social spending, reductions in inefficient taxes, and productive investments can promote sustainable and equitable outcomes. Fossil fuel subsidy removal would also reduce energy security concerns related to volatile fossil fuel supplies." - International Monetary Fund
Fossil Fuel Subsidies
"Internationally, governments provide at least $775 billion to $1 trillion annually in subsidies, not including other costs of fossil fuels related to climate change, environmental impacts, military conflicts and spending, and health impacts. This figure varies each year based on oil prices, but it is consistently in the hundreds of billions of dollars. Greater transparency in reporting would allow for more precise figures.
When externalities are included, as in a 2015 study by the International Monetary Fund, the unpaid costs of fossil fuels are upward of $5.3 trillion annually – which works out to a staggering $10 million per minute.
Oil Change International’s most recent reporting looks at money for fossil fuel production only (including exploration, and extraction, and development) in the G20 governments – which includes many of the world’s most developed countries. These governments are providing support to oil, gas, and coal companies to the tune of $444 billion per year, between direct national subsidies, domestic and international finance, and state-owned enterprise investment. See the More Info: Worst of the Worst section below for more detail.
You can find more information on the breakdown of global subsidies and international finance at our interactive website: energyfinance.org"
Global Fossil Fuel Production Subsidies:
$444 billion per year
Global Public Subsidies for Renewables:
$121 billion per year
More Info
If you want to learn more and love graphs, check out:
Farming Subsidies
Current Subsidies Hurt Farmers
Current farming subsidies unfairly prop up mega corporations, monocrop livestock feed production, factory farms, and livestock facilities such as feed lots, meat processors, as well as the largest dairy operators. This means that smaller family farms, and farms producing the healthier herbs, fruits, nuts, and vegetables aren't getting a fair share. Smaller farms are suffering the consequences of climate change and poor political policies, with many farmers going bankrupt, losing their historical family homes, or even committing suicide.
Too Much Milk in Europe (Documentary)
This documentary discusses how out-of-control European dairy subsidies have been hurting European dairy farmers, who now produce record amounts of dairy products, for increasingly little profit. As a result European govornments have been scrambling to find buyers for all the excess milk, which has resulted in them dumping severely underpriced dairy products onto poorer countries in the guise of "nutritional aid". The documentary then moves to Africa, where cattle farmers are being pushed out of business, because they can't compete with the imported subsidized products now filling African shop shelves. In the long run, pushing local farmers out of business, sets these poorer countries up for higher chances of famine in the future as farmers can no longer make a profit.
Current Subsidies Hurt Human Health
The pyramids in this link show the vast difference between the recommended healthy diet, vs what the US government actually subsidizes instead.
"The first study, conducted by researchers from the Centers for Disease Control and Prevention and Emory University, found that “current federal agricultural subsidies focus on financing production of food commodities, a large portion of which are converted into high-fat meat and dairy products” and other items that increase the risk for cardiometabolic risks in American adults.
Researchers followed 10,308 American participants from the National Health and Nutrition Examination Survey and measured the percentage of calories consumed from subsidized foods, body weight, blood pressure, inflammation measures, and cholesterol levels. Those who consumed the most subsidized foods, including high-fat meat and dairy products, were 41 percent and 21 percent more likely to be overweight and have elevated blood sugars, respectively.
It gets worse. Subsidized meat and dairy products can also lead to early death. In a related study, Harvard researchers found that eating more saturated fat—found primarily in animal products—was associated with increased risk of death.
Children’s health also pays a toll when meat and dairy producers profit. Last summer, our report “Who’s Making Money from Overweight Kids?” took a look at subsidies in school lunches.
We found that in 2013, the U.S. Department of Agriculture paid more than $500 million to 62 meat and dairy producers for beef, chicken, turkey, pork, fish, dairy, eggs, and lamb that ended up in school meals.
So where are the subsidies for disease-fighting fruits and vegetable? They receive just a fraction of what goes to meat and dairy products. Maybe that’s why new USDA findings show that Americans are eating fewer fruits and vegetables than they were a decade ago." - The Physician's Committee for Responsible Medicine
Current Subsidies Hurt the Planet
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Resources for Reforming Farm Subsidies
Faunalytics: Reforming Animal Agriculture Subsidies: A Guide for Advocates "Animal agriculture subsidies create an uneven playing field for advocates and plant-based producers. Our study looks at successes and challenges in the fight to shift, reduce, or eliminate subsidies."
Options for Reforming Agricultural Subsidies from Health, Climate, and Economic Perspectives
Airline Industry Subsidies
"Climate pollution from aircraft is often overlooked, but if aviation were a country, it would be among the top 10 greenhouse gas emitters." - Environmental Defense Fund
"Air travel contributes to 2.5% of global CO2 emissions and is the fastest-growing source of transport-related greenhouse gas emissions in the EU. According to the European Environment Agency, rail travel accounts for 14 grams of CO2 emissions per passenger mile, which is far less than the 285 grams generated by air travel.
The Greenpeace report, called ‘Ticket prices of planes vs trains – a Europe-wide analysis’, shows that travelling by train is on average twice as expensive as by plane in Europe, with some rail routes costing up to 30 times as much as their corresponding flights." - Railway-Technology
"new information also reveals the extent to which airlines do not pay for most of their pollution, as flights starting or ending outside Europe are currently exempt from the EU carbon market. In the case of Lufthansa, British Airways and Air France, the airlines do not pay anything for 77%, 86% and 83% of their emissions respectively. The Irish airline Ryanair is the biggest emitter on flights within Europe, but that means it has a much higher share of its emissions subjected to carbon trading (over 80%)." - Biggest Airline Polluters Received the Biggest Bailouts, New Data Shows
Europe
Biggest Airline Polluters Received the Biggest Bailouts, New Data Shows "Figures released by T&E show that the most polluting airlines were among the biggest beneficiaries of public bailouts following the pandemic. Official data on total emissions show that Lufthansa, British Airways and Air France were the three biggest European airline emitters before Covid-19 grounded flights."
How Low-Cost Airline Subsidies are Hampering the Great Modal Shift "A new Greenpeace report argues that the difference in ticket prices, due to airline subsidies, is the barrier to travellers choosing trains over flights." Includes multiple graphs and charts to show the staggering differences in cost.
North America
Oceana
Fishing Industry Subsidies
Most subsidies go towards ship fuels so that fishing fleets can go further out to sea than their poorer competitors. Currently subsidies support a fishing fleet 3 times greater than what is physically sustainable for fish populations to recover and reproduce.
Subsidies disproportionately go to richer instead of poorer recipients, which increases hunger instead of alleviating the problem.
Europe
The UK government continues to fund the fishing industry including goals of "Boosting the demand for English seafood and accessing new markets" despite scientists and conservationists struggling to get much needed protections for our endangered and badly trawled reefs.
Solutions
Grants for Schools & Teachers
To learn more about funding available for schools, teachers, and educational programs, check out our Grants for Schools & Teachers page.
Active Transport vs Passive Transport
Active transport options including walking, bike riding, skateboarding, canoeing, or any other mode that uses your own energy to move. These have been scientifically linked to better health (mental and physical), money saving for movers/increased spending for areas with safer/slower travel routes, reduced crime, reduced pollution, reduced wear on roadways, and stronger/safer communities.
Passive transport tends to cost more than passive options, cause health problems due to increasing sedentary living habits, and creates higher maintenance fees for surrounding communities, meaning higher taxes. When a fast moving road cuts through a community, this can cause irreparable harm both by physically dividing healthy communities, and by increasing health problems from fumes, collisions, as well as noise and light pollution.
Tools & Trackers
Europe
Airlines
Bailout Tracker ✈️ "The Covid-19 crisis has led to a new source of subsidies through bailouts provided to airlines"
Legal Resources
North America
USA
Organizations
International
The IMF "is a global organization that works to achieve sustainable growth and prosperity for all of its 190 member countries. It does so by supporting economic policies that promote financial stability and monetary cooperation, which are essential to increase productivity, job creation, and economic well-being. The IMF is governed by and accountable to its member countries."
Oil Change International "is a research, communication, and advocacy organization focused on exposing the true costs of fossil fuels and facilitating the coming transition towards clean energy."
Asia
The Asia Society Policy Institute "works with policymakers, scientists, economists, business leaders, and experts from other fields to enhance the regional and global fight against climate change through accelerating the transition to net zero emissions, carbon pricing, clean energy and climate diplomacy."
Europe
UK
Make My Money Matter "Our banks and pension funds financially support almost every sector. Lots of them put money into industries like fossil fuels, tobacco, and arms. We’re here to make sure they do better. After all, what’s the point in retiring in a world on fire?"
North America
Congress for the New Urbanism The organizational center for the New Urbanist movement, promoting walkable, mixed-use neighborhood development, sustainable communities and healthier living conditions.
Canada
Congress for the New Urbanism The organizational center for the New Urbanist movement, promoting walkable, mixed-use neighborhood development, sustainable communities and healthier living conditions.
USA
Agriculture Fairness Alliance ® "is a 501(c)(4) nonprofit whose mission is to strategically employ lobbyists to accelerate policy changes that make sustainable plant-based food accessible to everyone at a price they can afford, empower communities to develop local plant based agriculture systems, and give farmers tools and strategy to transition from animal ag to plant based farming."
Lobbyists 4 Good: Help Farmers Transition Away From Animal Agriculture "We will advocate for re-allocating subsidies to help farmers restructure from animal agriculture and toward growing plants intended for human consumption.
Farmers would be supported in transitioning to supplying the country with vegetables, legumes, nuts, seeds, fungi, and other plant-based crops. The objective isn't to put anyone out of business. Rather, the objective is to provide incentives and support to transition to a food supply chain that is sustainable, healthy, and humane."