Conclusion

Abstract

In 2016, total energy investment was more than $1.7 trillion, in which the combined share of oil and gas was $649 billion and renewables (transport and heat) accounted for $19 billion. G20 nations responsible for more than three fourths of global greenhouse gas (GHG) emissions contributed an average of $71.8 billion/year of public finance for fossil fuel projects and only $18.7 billion/year for renewable energy. The adverse effects of fossil fuel subsidies include the diversion of public funds from other necessary expenses such as social spending, health, clean energy, and energy access for the poor. Termination of these subsidies can reduce GHG emissions by 21% and deaths caused by fossil fuel-related air pollution by 55%. However, it will be a difficult decision as the world oil demand, which was approximately 14.3 billion liters per day in 2014, will likely increase to 16.5–19.1 billion liters per day by 2040. The continued extraction and combustion of fossil fuels will create severe environmental challenges.