Fossil Fuels Subsidies ‘Jeopardizing Climate Deal’, Say Major Investors

A group of investors and insurers who manage $2.8trn have called on the G20 to end public funding for coal, oil and gas by 2020

Investors with US$2.8 trillion under management have called on the world’s leading economies to stop subsidizing fossil fuels within four years.

The group, which includes insurance brands Legal & General and Aviva, issued a statement on Wednesday calling for a 2020 deadline to be set for a phase out of subsidies for coal, oil and gas by the G20 nations.  G20 foreign ministers are meeting this week ahead of a leaders’ summit in Hamburg in July.

The G7 nations have pledged to end their subsidies by 2025, but much of the world’s carbon emissions growth is coming from countries on the next rung of the economic ladder.

The G20, which encompasses many of the world’s emerging economies, have agreed to phase out “inefficient fossil fuel subsidies that encourage wasteful consumption” over the “medium term”.  But despite increasing pressure from civil society and some countries within the G20, the commitment has remained hazy.

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