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Fossil fuel subsidies form a significant percentage of the GDP of many low- and middle-income countries
Published on 04 April 2022
Fossil fuel subsidies form a significant percentage of the GDP of many low- and middle-income countries. Fossil fuel subsidy removal presents a viable avenue for governments to create fiscal space which can be channeled into green investment, correcting environmental externalities, and enhancing social protection programs, especially in the light of the impacts of the COVID-19 pandemic. Most of all, reallocation of fossil fuel subsidies could deliver an important boost to achieving the SDGs.