The IEA stated that, inefficient fossil fuel subsidies are a significant barrier to a more sustainable future in its October 2022 World Energy Outlook (WEO).
Although it is socially necessary to safeguard society’s most vulnerable members, the report pointed out that, one of the most obvious disadvantages of fossil fuel usage subsidies is the financial burden that it places on nations.
Therefore, nations must end wasteful fuel subsidies in order to secure their energy transition. Fuel subsidy payments increased between 2021 and 2022 after a substantial decline in 2020.
