Governments worldwide are projected to spend US$1.1 trillion supporting the fossil fuel industry this year, with the figure potentially rising to US$1.43 trillion if global oil prices climb to US$110 per barrel, according to a new report by the United Nations Development Program (UNDP).
The findings were released as climate campaign group 350.org, Fuel Poverty Action and other coalition partners staged a demonstration outside the UK Department for Energy Security and Net Zero, protesting rising energy costs and calling for stronger measures to accelerate the transition to clean energy.
The UNDP report, Military Escalation in the Middle East: Cushioning the Global Shock, says governments have responded to conflict-driven increases in oil prices by expanding fossil fuel subsidies, introducing fuel price caps and offering tax rebates to cushion consumers from rising energy costs.
While these measures provide short-term relief, the report warns they are placing a growing strain on public finances and diverting resources from long-term investments in education, healthcare, renewable energy and climate resilience.
