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Updated Nov 14, 2014

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Report finds G20 nations breaking their fossil fuel promises

A report has stated that world Governments are breaking their promises to cut fossil fuels.

The report, produced by the Overseas Development Institute, claims that G20 nations spent almost £56 billion a year on finding oil, gas and coal.

This comes at a time when warnings have been given that two thirds of existing reserves must be left in the ground in order to avoid dangerous climate change in the near future.

A spokesman from the UK Government, defending their actions, stated that the fossil fuel industry "creates jobs and generates investment" throughout the UK.

The spokesman also said the tax regime for oil and gas includes a number of allowances which reduce the tax burden on specific, difficult gas or oil fields.

He added that allowances did not constitute a subsidy.

Previously, the Government have argued that they were helping firms find fossil fuels within the UK to help increase energy security, attract royalties and help with the balance of payments.

After investigation, the report argues against these statements from the Government and claims subsidies are irrational and a waste of public money.

It was suggested that renewable energy was a better way to invest taxpayers' funds.

Not only are G20 governments' funding exploration for fossil fuels in their own countries, but the UK, for example, has been spending money to explore in Siberia, Brazil and India amongst other countries.

Stephen Kretzmann, Director of the pressure group Oil Change International, made a plea to governments to end exploration subsidies commenting "Five years ago, G20 governments pledged to phase out fossil fuel subsidies and take action to limit climate change. Immediately ending exploration subsidies is the clearest next step on both fronts".


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