UN’s Gutteres calls for shift in subsidies from fossil fuels to renewable energy

May 26, 2021 News

…tells world leaders decarbonisation of global economy is inevitable

The United Nations (UN) is calling for a shift in the policy of countries worldwide, to move away from supporting fossil fuel projects through financing such as subsidies, towards renewable energy and the promotion of the transfer of technology to developing countries.
This, since among other reasons, “decarbonisation of the global economy is inevitable.”
United Nations’ Secretary General, Antonio Guterres, put the position forward bluntly during his keynote address yesterday to Heads of State in attendance at the Global Roundtable on Transforming Extractive Industries for Sustainable Development.
Addressing the gathering also comprising industry experts and leaders, the UN Head noted that countries representing 73 percent of global carbon emissions, have committed to net zero by mid-century.
He observed however, in order to achieve the objectives outlined, “Countries and donors need to support the rapid deployment of renewable energy technologies and the phase-out of fossil-fuel based assets.”
To this end, the UN Secretary General proffered, the first priority is to end coal use. This, he said, means no new coal plants must be built or financed—pursued in tandem with a phase out of coal use by 2030 in OECD (Organisation for Economic Co-operation and Development) countries and 2040 in the rest of the world.
According to Guterres, to boost these efforts, nations need to shift subsidies from fossil fuel to renewable energy and promote technology transfer. He cautioned however, this agenda needs to take account of and mitigate the impacts of ending subsidies on the poorest and most marginalised.
He observed that “we have repeatedly seen how sudden changes with inequitable impacts can precipitate social unrest,” and as such posits, “support from the whole development finance architecture is paramount so fossil fuel-dependent developing countries can finance a just transition.”
The UN Chief used the occasion to also urge multilateral development banks, development finance institutions, the International Monetary Fund and other institutions to support the process decisively.
Additionally, he pointed to the need for greater regional and global coordination to manage shocks and to ensure a smooth, just and sustainable transition process. In this respect, he said the United Nations Regional Economic Commissions will continue to have an important role and invited the 37 Member countries to “join in the creation of a Working Group on Extractive Industries hosted by the United Nations to help transform the sector.”

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