The cost of 'post-tax' energy subsidies by governments will reach up to $5.3 trillion in 2015, despite the concerns over climate change, according to International Monetary Fund's report on Monday.
The fund said that the 'staggering' estimates, which accounts for 6.5 percent of global GDP, exceeds the government's total spending on health.
'Post-tax energy subsidies are dramatically higher than previously estimated—$4.9 trillion in 2013, and projected to reach $5.3 trillion in 2015,' the report read.
The wide usage of oil, gas and coal is accused of increasing CO2 emission, which worsens the climate change and raising air pollution. Removing subsidies is seen as a key element toward the purpose.
IMF said carbon emission could be cut globally by more than 20 percent, if the subsidies are removed, while increasing the government revenues by $2.9 trillion, or 3.6 percent of global GDP.
The report came out as the governments world-wide are aiming to tackle the global warming by settling an agreement on the carbon emissions at Paris conference in December.
China has become the biggest subsidizer in energy with a $2.3 trillion amount due to its reliance on coal that pollutes the nation's air heavily. The U.S. with an amount of $699 million and the EU with $330 million followed it.
By Furkan Naci Top
Anadolu Agency
furkan.top@aa.com.tr