The Biggest Fossil Fuel Subsidies Are Indirect, and Bigger Than Ever.

Were the world to raise prices to the level that accounts for both their explicit and implicit costs, then carbon dioxide emissions from fossil fuels could fall more than 40% below their baseline levels (and a third lower than emissions in 2019) by the end of the decade. About one-quarter of the total - $1.33 trillion - is made up of what the IMF terms explicit subsidies, or undercharging for the cost of supplying a fossil fuel or electricity. The IMF's data itself, though, also suggests a path toward reducing implicit subsidies without a coordinated global effort of raising prices to efficient levels. [Extracted from the article]