Fossil-fuel subsidies
Government support for fossil-fuel production and consumption, comprising explicit price subsidies plus implicit subsidies (uncharged environmental and health externalities). Its strongest welfare pathway: it weakens Renewable share of global electricity generation, a worse welfare reading. The most recent of its 18 recorded facts is “Prabowo says Indonesia will go ahead with a B50 biodiesel blend this year” (30 March 2026).
Read the full background
Government support for fossil-fuel production and consumption, comprising explicit price subsidies plus implicit subsidies (uncharged environmental and health externalities). Persistently high subsidies lower the relative cost of fossil energy and slow the clean-energy transition.
What it changes
Indicators this driver moves, strongest relation first. Relation strength is separate from the observed state.
Weakens · 55% impact strength
Observed
30% of electricity generation · 11 above the normal line (2023)
Better than normal6 readings, 2000–2023: rose from 18.9% of electricity generation to 30% of electricity generation.
Above normal = better · Lag ~24 mo · Relation verified
Strengthens · 40% impact strength
Observed
4.73 tonnes CO2 per person per year · 2.43 above the normal line (2024)
Worse than normalTwo readings: 4.71 tonnes CO2 per person per year (2023) and 4.73 tonnes CO2 per person per year (2024).
20232024 Above normal = worse · Lag ~12 mo · Relation verified
Strengthens · 30% impact strength
Observed
32.9 micrograms per cubic metre (annual mean, population-weighted) · 27.9 above the normal line (2023)
Worse than normal3 readings, 2021–2023: fell from 33.2 micrograms per cubic metre (annual mean, population-weighted) to 32.9 micrograms per cubic metre (annual mean, population-weighted).
Above normal = worse · Lag ~12 mo · Relation verified
Key facts moving this driver
Ranked by impact weight, then verification, then recency.
- Energy Secretary Wright orders DOE to prioritize fossil fuels and reject net-zero5 February 2025 · Strengthening · impact weight 0.7
- Commission presents the REPowerEU plan18 May 2022 · Strengthening · impact weight 0.55
- Interior Department curtails federal offshore-wind leasing and approvals in 202529 July 2025 · Strengthening · impact weight 0.5
- Germany enacts the LNG Acceleration Act20 May 2022 · Strengthening · impact weight 0.45
- Peninsular diesel floats to about RM3.35 a litre under targeted subsidies10 June 2024 · Weakening · impact weight 0.55
- Budi95 sets citizen RON95 at RM1.99 a litre and a two-tier pump30 September 2025 · Weakening · impact weight 0.45
- Xi tells UNGA that China will not build new coal-fired power projects abroad21 September 2021 · Weakening · impact weight 0.45
- RP4 electricity tariffs start with a higher base rate and monthly fuel adjustment1 July 2025 · Weakening · impact weight 0.4
Accountability & contradictions
A view of the graph: opposing facts, the actors behind them, and what is disputed.
What strengthened it
What weakened it
Driver over time
The dated facts recorded on this driver, oldest first.
21 September 2021 · Weakening
Xi tells UNGA that China will not build new coal-fired power projects abroad27 April 2022 · Strengthening
Hungary keeps the Paks II nuclear contract with Rosatom after the invasion18 May 2022 · Strengthening
Commission presents the REPowerEU plan20 May 2022 · Strengthening
Germany enacts the LNG Acceleration Act11 August 2023 · Weakening
The government publishes the National Energy Transition Roadmap10 June 2024 · Weakening
Peninsular diesel floats to about RM3.35 a litre under targeted subsidies5 February 2025 · Strengthening
Energy Secretary Wright orders DOE to prioritize fossil fuels and reject net-zero1 July 2025 · Weakening
RP4 electricity tariffs start with a higher base rate and monthly fuel adjustment29 July 2025 · Strengthening
Interior Department curtails federal offshore-wind leasing and approvals in 202530 September 2025 · Weakening
Budi95 sets citizen RON95 at RM1.99 a litre and a two-tier pump
Causal path
Facts move the driver; the driver moves indicators. Open the full network to inspect each link.
- Facts18 recorded
- moveDriverFossil-fuel subsidies
- weakensIndicators (3)Renewable share of global electricity generation
Evidence
Review status of the facts behind this driver.
Documented Sep 2021 – Mar 2026
How Factrail grades evidenceBy the Factrail desk · Method: how we source and score · Last reviewed · Sources: 18
Questions
Who is responsible for Fossil-fuel subsidies?
Factrail's graph links Anwar Ibrahim, Chris Wright, and Doug Burgum to Fossil-fuel subsidies through sourced facts.
When did Fossil-fuel subsidies start?
21 September 2021: Xi tells UNGA that China will not build new coal-fired power projects abroad.
How does Fossil-fuel subsidies affect people?
It is linked to Renewable share of global electricity generation, Global CO2 emissions per capita, and Population-weighted PM2.5 air pollution exposure (global) in Factrail's graph.