Despite the urgency of climate change the world spends billions subsidizing fossil fuels. In 2023 the International Monetary Fund (IMF) reported $7 trillion annually – 7% of global GDP – spent on fossil fuel subsidies. Why support a leading cause of climate change when clean energy technologies like solar thermochemical reactors need investment?
The Misguided Logic of Fossil Fuel Subsidies: Governments justify fuel subsidies to lower energy costs, protect jobs and ensure security. While these goals have merit, the long-term effects are disastrous. Subsidies perpetuate dependence on fossil fuels while delaying clean energy adoption. Each dollar spent incurs higher costs from pollution, healthcare and climate disasters while benefitting corporations and the wealthy disproportionately.
Solar Thermochemical Reactors: A Missed Opportunity: Solar thermochemical reactors offer clean transportation fuels by using concentrated solar energy to produce hydrogen or synthetic fuels with minimal emissions (How does it work? https://www.youtube.com/watch?v=zKZmWLOf2gI). They could decarbonize high-emission sectors like aviation and shipping. Yet these transformative technologies receive far less funding than fossil fuels. Scaling requires substantial investment in research and infrastructure which remains underfunded.
Misaligned Priorities: Fossil Fuel subsidies entrench outdated systems making fossil fuels artificially cheap while clean energy struggles. Redirecting just a portion of these funds could transform the energy landscape. Doubling renewable investment could boost GDP by 1.1% by 2050, per the International Renewable Energy Agency (IRENA) and the fast-track solar thermochemical reactor adoption.
The Path Forward: Policymakers must phase out subsidies and introduce carbon pricing to reflect emissions’ true cost. Redirecting funds would support research, deployment and job creation in sustainable sectors while ensuring a just workforce transition from fossil fuels to clean energy.
A Closing Window of Opportunity: The Intergovernmental Panel on Climate Change (IPCC) warns emissions must peak by 2025 and halve by 2030 to limit warming to 1.5 degrees Celsius. Solar thermochemical reactors can help decarbonize transportation but need urgent investment. Continued subsidization of fossil fuels is environmentally and economically short-sighted. Reallocating funds can drive innovation for a sustainable future. The choice is clear: destruction or salvation.
Greg Lomas, Director
Featured photo: Michael Franke
Sartfell photo: Anthony Dawton