IEA: Fossil fuel subsidies must stop - 05/10/2011

Business energy customers may be interested to hear that the International Energy Agency (IEA) has called on governments to stop offering subsidies to support the use of fossil fuels, which may have an impact on cheap energy deals.

The group, alongside the Organisation for Economic Cooperation and Development (OECD), warned that these incentives encourage wasteful consumption and hinder the development of clean energy sources.

Executive director of the IES Maria van deer Hoeven noted government subsidies that artificially reduce the price of energy sources such as coal and gas amounted to $409 billion (£264 billion) worldwide in 2010 - a $110 billion rise from the previous year.

OECD secretary-general Angel Hurria added cutting out this funding is an obvious way to meet economic and environmental goals.

However, he said it is important that well-targeted programmes are put in place to assist customers and energy workers who may be adversely affected by such a move in the short term.

Recently, it was observed by press officer at RenewableUK Rob Norris that despite the need for more green energy sources, there are still many barriers to implementing an effective wind power industry in Britain.

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