As the G20 presiding nation, South Africa has an opportunity to champion issues relevant to emerging economies. One of these issues is government subsidisation of privately owned fossil fuel corporations.
Fossil fuel subsidies are paid when a government covers some of the costs involved in producing fossil fuel energy. This can be done by increasing the revenue received by oil, gas or coal companies, or lowering the price paid by consumers for fossil fuel based energy.
Fossil fuel subsidies may include tax breaks, low interest loans, and underpriced energy, all of which reduce costs for companies or consumers and encourage more fossil fuel use.
