When the world met in Paris, in 2009, they signed commitments to adopt “finance flows consistent with a pathway toward low greenhouse gas emissions and climate-resilient development.” A G20 scorecard from the Institute for Sustainable Development finds that the actions of G20 nations contradict this. 

At least $584 billion in fossil fuel subsidies  

“G20 governments were already not on track to meet their Paris Agreement commitments on ending public support for fossil fuels before COVID-19,” said Anna Geddes from the International Institute for Sustainable Development, lead author of the report Doubling Back and Doubling Down: G20 Scorecard on Fossil Fuel Funding. “Now, disappointingly, they are moving in the opposite direction. G20 funds for fossil fuels are likely on course to remain constant or even trend upwards again in 2020 compared to the last few years where we’ve seen a slight drop in support.”

These nations provided at least $584 billion to fossil fuel companies, annually, “via direct budgetary transfers and tax expenditures, price support, public finance, and state-owned enterprise investment for the production and consumption of fossil fuels at home and abroad.”

They are believed to have spent another USD $233 billion in COVID relief for fossil fuel companies. 

One of the worst: Canada 

One of the worst, when viewed in terms of GDP,  is Canada, whose marks for transparency and honouring agreements are both “mediocre.” Our government has still not fulfilled a 2018 pledge to undergoing a G20 peer review of fossil fuel subsidies “and there has been little transparency on what measures it will include.”  

The Canadian government gives the gas and oil industry USD $11.1 billion a year. This is a  17% increase, relative to 2014–2016 averages. A large chunk of this money is being directed towards “the development of infrastructure for production and export, in particular for liquefied natural gas.”

Overall, Canada was given 52/100 – or fifth place on the G20 scorecard.

The Best: Germany

Germany has the highest score among G20 nations “due to its good transparency, strong commitments, and relatively low levels of support for oil and gas production, fossil fuel-based power, and fossil fuel consumption. It has also made progress in ending support to fossil fuels, with a drop in overall support of 35% relative to the 2014–2016 average.” 

However, Germany is still dependent on coal and diesel fuel and provides USD $2.6 billion in subsidies. Consequently, Germany’s aggregate score dropped to 71/100. 

France, Japan and Italy 

France and Japan are tied for second, with scores of 55/100. 

France continues to provide the fossil fuel industry with USD $8.4 billion in “tax expenditures.” In addition, the government provided Air France with loans of close to a USD $8 billion “under the condition that it reduces emissions, such as by ending short-haul flights.”

Japan’s numerical outlay is almost identical, USD $8.3 billion, but this is also a 48% drop in expenditures. The bulk of this money goes to coal projects in nations like Bangladesh, Vietnam, and Indonesia. 

Italy came in third, at 54/100

The United States. 

While the actual number is not known, the United States is believed to provide fossil fuel companies with subsidies of more than $20 billion. Considering that it has eight or nine times the population, this seems like a proportionately smaller amount than Canada.   

The United States is also one of the two G20 countries that provided “transaction-level data on public finance that appears to be comprehensive and specific.” (The other being Argentina) 

However: 

• “The United States has backslid on many of its commitments to phase out fossil fuel subsidies under the Trump administration. This includes reneging on the expected follow up on the incomplete peer review conducted in 2016.”

• “Many top fossil fuel-producing states, including North Dakota and Wyoming, do not consistently report revenue losses from the tax breaks they provide.”

• “The federal government is using a wide variety of new tools to reduce costs for industry, including threatening private banks with the loss of public subsidies if they do not continue financing oil and gas projects and limiting the ability of states to block interstate pipelines.”

Going further

There is much more detail about all of the G20 nations in the report Doubling Back and Doubling Down: G20 Scorecard on Fossil Fuel Funding.