PM calls for global action on fossil fuel subsidies

Prime Minister John Key today presented UNFCCC Executive Secretary Christiana Figueres with a message from close to 40 nations calling for the removal of inefficient fossil fuel subsidies.

“Phasing out fossil fuel subsidies is absolutely vital if the world is to succeed in substantially reducing emissions,” says Mr Key.

“Research shows phasing out these subsidies could reduce greenhouse gas emissions by as much as 10 percent.

“Countries subsidised fossil fuels to the tune of US$500 billion in 2014. These subsidies have the perverse effect of encouraging businesses and consumers to burn more fossil fuel and create more emissions.

“Removing these subsidies will free up that money so it can be spent on policies which actually improve wellbeing such as low carbon energy, health or education.

“It makes no sense to be calling for emissions reductions on one hand, while subsidising emissions on the other.”

Mr Key presented United Nations Framework Convention on Climate Change (UNFCCC) Executive Secretary Christiana Figueres with the Friends of Fossil Subsidy Reform Communique at the UN Climate Change Conference in Paris today.

It has been endorsed by close to 40 countries, including France, Germany, Italy, Mexico, Morocco, the Netherlands, Samoa, the United Kingdom, the US and Uruguay.

Thousands of businesses are also supporting it under the leadership of The Prince of Wales Corporate Leaders’ Group, and the We Mean Business Coalition.

A number of New Zealand businesses and business organisations have also endorsed the Communique, including Business New Zealand, the New Zealand Shippers Council, the Auckland Chamber of Commerce and Mighty River Power and Fonterra.