<
https://freedium.cfd/https://medium.com/the-new-climate/fuel-subsidies-governments-dirty-secret-39f71f1d5206>
"On one of many sun-drenched days I found myself driving along the coast of the
Grand Harbour. The historic bastions of Valletta cast their golden hues onto
the blue waters of the Mediterranean Sea, creating a breath-taking view. As I
admired the scenery, my gaze was drawn to a superyacht anchored nearby. While
such a sight is not uncommon for our scenic harbour, what got my attention was
the two refueler trucks parked alongside it.
I slowed down to catch a closer glimpse of the vessel. To my surprise, I
noticed that the yacht was owned by the royal family of one of the Gulf states,
where vast oil reserves seemed as abundant as the sands of the desert. Yet,
here they were in Malta, getting their yacht refuelled. Fuel in Malta was being
generously subsidized at the time after oil prices had surged in 2020. This
made Malta an irresistible destination for super-yacht owners seeking
cost-effective refuelling. Even the wealthiest of the wealthy couldn't resist a
good deal.
A few weeks later, the Maltese government, embarrassed by such stories,
released an announcement excluding superyachts from fuel subsidies.
Nevertheless, electricity generated from burning fossil fuels as well as fuel
at gas stations would still be subsidised for the general population. In fact,
in the budget presented to parliament on the 30th of October 2023, €4.90 out of
every €100 allocated by the government would be dedicated to maintaining stable
electricity and fuel prices in 2024.
Despite its small size and minimal carbon footprint, Malta, having one of the
lowest per capita greenhouse gas emissions in the European Union, may find that
its policies are contributing to an increase in CO2 emissions within the small
island nation.
Fuel subsidies offer a welcome relief to the population, who are already
contending with the ever-rising cost of living. However, as increased
government spending adds to the national debt, one might rightfully question
the financial sustainability of these subsidies and, even more critically,
their environmental sustainability. Regrettably, the subsidised fuel prices not
only help modest families afford their daily commute and heating their homes
during the winter, but they also benefit the more affluent in keeping their
swimming pools warm and refuelling their boats and luxury cars.
Malta isn't alone; global fuel subsidies reached 7 trillion dollars in 2022.
That's
trillion, with a 'T.' This surge was primarily driven by the economic
recovery from the COVID-19 pandemic and the energy price spike resulting from
Russia's invasion of Ukraine. Despite the urgent need to combat climate change,
these subsidies, equivalent to 7.1% of the global GDP, have significant
economic and environmental consequences. They surpass annual spending on
education and make up a substantial portion of healthcare expenses."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
