3 August 2017
Report Highlights Health Benefits of Phasing Out Fossil Fuel Subsidies
UN Photo/R Marklin
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The Health and Environment Alliance (HEAL) released a report titled ‘Hidden Price Tags: How Ending Fossil Fuel Subsidies Would Benefit Our Health'.

It finds that while G20 governments spent US$444 billion in 2014 on subsidies for fossil fuels, the health impacts of this fossil fuel usage caused 3.8 million deaths and cost US$2.76 trillion.

The report presents key messages on the benefits of phasing out fossil fuel subsidies, including reducing premature deaths and disease, and provides key recommendations for policymakers.

27 July 2017: The Health and Environment Alliance (HEAL) released a report titled, ‘Hidden Price Tags: How Ending Fossil Fuel Subsidies Would Benefit Our Health,’ which finds that while G20 governments spent US$444 billion in 2014 on subsidies for fossil fuels, the true cost of these subsidies to society is substantially higher. The report estimates that the 2014 health impacts of this fossil fuel usage within G20 countries caused 3.8 million deaths and cost US$2.76 trillion.

The three-part report calls for phasing out fossil fuel subsidies as a key part of keeping global temperatures below 1.5ºC and a first, important step in the transition to global decarbonization. It calls for governments to undergo fossil fuel subsidy reforms and reallocate their public spending to projects that provide public health benefits rather than those that cause health problems.

Part one of the report outlines how to define fossil fuel subsidies, identifies key problems with their use, and examines coal and diesel cars, which it refers to as “two of the most harmful subsidized fuels.” Part two contains key findings, including regional sub-sections on fossil fuel subsidies in China, Germany, India, Poland, South Africa, Turkey and the UK, and suggests alternative subsidies that can be used to achieve health benefits.

The report highlights four benefits countries can achieve from phasing out fossil fuels.

In its key messages, the report highlights four benefits countries can achieve from phasing out fossil fuels. These include: reductions in premature deaths and disease caused by air pollution; lessening of health care costs; the prevention of catastrophic climate change-induced health impacts; and the availability of funds for public policies to promote good health, such as for transitioning to renewable energy systems.

In the final section of the report, the authors provide a set of recommendations for policymakers. These include suggestions to: develop clear definitions of what constitutes a fossil fuel subsidy, so as to identify the “funds that fuel disease”; take part in voluntary peer reviews to lay the groundwork for a transparent and fair reform process; communicate the key messages on the benefits of ending fossil fuel subsidies, showing that ending their use is a “win-win” for people’s health and the climate; reallocate subsidy funding towards policies that benefit health and climate; and prioritize a just transition and social equality in subsidy reform. [Publication: Hidden Price Tags] [HEAL Press Release]

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