fuel subsidies globally each year, according to the International Monetary Fund. The IMF has called for a “green recovery” from the pandemic, which would involve redirecting these subsidies towards green investments.
Ultimately, the challenge of financing the transition to a green economy is immense, but necessary in order to meet climate goals and limit global temperature rises. Governments, businesses, and individuals will all have to play a role in funding this transition, whether through taxes, levies, subsidies, or other financial mechanisms. The key will be finding the right balance between raising the necessary funds and ensuring that the costs are distributed fairly and equitably.