Fact Sheet | Proposals to Reduce Fossil Fuel Subsidies (2021)
by Savannah Bertrand (Environmental and Energy Study Institute) U.S. direct subsidies to the fossil fuel industry are estimated at roughly $20.5 billion per year, including $14.7 billion from federal subsidies and $5.8 billion from state subsidies. When externalities such as health, environmental, and climate factors are included, it is estimated the United States subsidizes fossil fuels to the tune of $649 billion per year. Eliminating fossil fuel subsidies would save taxpayer dollars while simultaneously reducing greenhouse gas emissions.
This fact sheet reviews President Biden’s 2021 Executive Order 14008, Tackling the Climate Crisis at Home and Abroad, the Administration’s Fiscal Year (FY) 2022 budget proposal, and recent Congressional actions to provide an overview of potential ways to reduce U.S. government subsidies to fossil fuels.
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