Every year farming, fishing, and fossil fuels receive $7.25 trillion in subsidies, the Guardian reports citing the World Bank. It is causing environmental havoc, and the funds must be repurposed to fight climate crisis, according to the World Bank.
The above-mentioned industries receive $23 million in “toxic” subsidies every minute. Many countries spend more on the harmful subsidies than they do on health, education or poverty reduction. Environmentally harmful subsidies are one of the most toxic aspects of development. “These are trillions that we are throwing away, trillions that are doing harm,” the World Bank claims.
The explicit environmentally harmful subsidies account for about $1.25 trillion a year, the bank reports. There are also implicit subsidies such as waived taxes and the cost of the damage caused by pollution. According to the World Bank, inaction will cause significant losses, while these funds must be spent on climate protection and poverty reduction as soon as possible.