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Explainer

Fossil Fuel Subsidies

A complex web of support measures is slowing the transition to renewables, but tools are available to dismantle wasteful and inefficient policies.

Governments have always used taxation to limit harmful activities and behaviours, such as smoking, and to incentivise those they view more positively. But they have been slow to use their fiscal powers to tilt their economies away from fossil fuel dependence, failing to encourage businesses and households to adopt renewable…

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