Research prompts warnings humanity is ‘financing its own extinction’ through subsidies damaging to the climate and wildlife
Source: The Guardian, 17 Feb. 2022 – https://www.theguardian.com/environment/2022/feb/17/world-spends-18tn-a-year-on-subsidies-that-harm-environment-study-finds-aoe
The world is spending at least $1.8tn (£1.3tn) every year on subsidies driving the annihilation of wildlife and a rise in global heating, according to a new study, prompting warnings that humanity is financing its own extinction.
From tax breaks for beef production in the Amazon to financial support for unsustainable groundwater pumping in the Middle East, billions of pounds of government spending and other subsidies are harming the environment, says the first cross-sector assessment for more than a decade.
This government support, equivalent to 2% of global GDP, is directly working against the goals of the Paris agreement and draft targets on reversing biodiversity loss, the research on explicit subsidies found, effectively financing water pollution, land subsidence and deforestation with state money.
The authors, who are leading subsidies experts, say a significant portion of the $1.8tn could be repurposed to support policies that are beneficial for nature and a transition to net zero, amid growing political division about the cost of decarbonising the global economy.
The report calls for governments to agree a target to eradicate environmentally harmful subsidies by the end of the decade at the biodiversity Cop15 gathering in China later this year, where it is hoped a “Paris agreement for nature” will be signed, and for companies to reveal the subsidies they receive as part of environmental disclosure reporting.
Christiana Figueres, who was head of the UN climate change convention when the Paris agreement was signed, welcomed the research. She said the subsidies were creating huge risks for the businesses receiving them.
“Nature is declining at an alarming rate, and we have never lived on a planet with so little biodiversity,” she said. “Harmful subsidies must be redirected towards protecting the climate and nature, rather than financing our own extinction.”
The fossil fuel industry ($620bn), the agricultural sector ($520bn), water ($320bn) and forestry ($155bn) account for the majority of the $1.8tn, according to the report. No estimate for mining, believed to cause billions of dollars of damage to ecosystems every year, could be derived.
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Nearly all global farm subsidies harm people and planet – UN
Almost 90% of the $540bn of support a year harms people’s health, the climate and drives inequality
“This report is a wake-up call for governments around the world to rethink agricultural support schemes to make them fit for purpose to transform our agri-food systems and contribute to the four betters: better nutrition, better production, better environment and a better life,” said Qu Dongyu, the FAO director general.
Almost 90% of the $540bn in global subsidies given to farmers every year are “harmful”, a startling UN report has found.
This agricultural support damages people’s health, fuels the climate crisis, destroys nature and drives inequality by excluding smallholder farmers, many of whom are women, according to the UN agencies.
The biggest sources of greenhouse gas emissions, such as beef and milk, received the biggest subsidies, the report said. These are often produced by large industrialised groups that are best placed to gain access to subsidies.
Without reform, the level of subsidies was on track to soar to $1.8tn (£1.3tn) a year by 2030, further harming human wellbeing and worsening the planetary crisis, the UN said.
Support for the “outsized” meat and dairy industry in rich countries must be reduced, while subsidies for polluting chemical fertilisers and pesticides must fall in lower-income countries, the analysis said.
The report, published before a UN food systems summit on 23 September, said repurposing the subsidies to beneficial activities could “be a game changer” and help to end poverty, eradicate hunger, improve nutrition, reduce global heating and restore nature. Good uses of public money could include supporting healthy food, such as vegetables and fruit, improving the environment and supporting small farmers.
Numerous analyses in recent years have concluded the global food system is broken, with more than 800 million people experiencing chronic hunger in 2020 and 3 billion unable to afford a healthy diet, while 2 billion people are obese or overweight, and a third of food is wasted. The total damage caused has been estimated at $12tn a year, more than the value of the food produced.
The report was published by the UN Food and Agriculture Organization (FAO), the UN Development Programme (UNDP) and the UN Environment Programme (UNEP) and is an underestimate of the total subsidies in the food system, as it only includes those for which reliable data is available in 88 countries.
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$1m a minute: the farming subsidies destroying the world – report
‘Perverse’ payments must be redirected to measures such as capturing carbon, report says
The public is providing more than $1m per minute in global farm subsidies, much of which is driving the climate crisis and destruction of wildlife, according to a new report.
Just 1% of the $700bn (£560bn) a year given to farmers is used to benefit the environment, the analysis found. Much of the total instead promotes high-emission cattle production, forest destruction and pollution from the overuse of fertiliser.
The security of humanity is at risk without reform to these subsidies, a big reduction in meat eating in rich nations and other damaging uses of land, the report says. But redirecting the subsidies to storing carbon in soil, producing healthier food, cutting waste and growing trees is a huge opportunity, it says.
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