Business News of Thursday, 16 November 2023

Source: www.ghanaweb.com

Remove subsidies on fossil fuels - Al Gore to government

Former Vice President of the United States of America, Al Gore Former Vice President of the United States of America, Al Gore

As part of efforts to reduce the use and production of fossil fuels to limit climate change, strengthen energy independence, reduce deaths and illness from air pollution, among other negative effects, the Former Vice President of the United States of America, Al Gore, has entreated Government of Ghana to scrap subsidies on fossil fuels.

In his view, the removal of the subsidies will make Ghanaians shift gradually to the use of renewable energy sources such as solar and wind.

The Founder of The Climate Reality Project at a media round table on the sidelines of The Climate Reality Leadership Training held in Accra stated that fossil fuels were cheap because the subsidies were being funded by taxpayers.

“The first step I would advise is to remove the subsidies for fossil fuel and that will in itself stimulate the adoption of more solar and wind just as it did in Nigeria…Those who say solar is too expensive for me to install…if the taxpayers are no longer forced to subsidize fossil fuels, the fossil fuels would not be artificially cheap as they are now,” Al Gore told the media.

He further said, “They seem cheap because the taxpayers are funding that and so the competition between a diesel and solar is unequal.”

Al Gore called on the World Bank, International Monetary Fund (IMF) and other multilateral institutions to make it possible for countries like Ghana to gain access to the private investment capital to fight climate change.

“In order to unlock those flows from the private sector, there need to be policy reforms like the elimination of subsidies for fossil fuels and reforms at the international levels such as changes in the World Bank and multilateral development banks to make it possible for countries like Ghana to gain access to the private investment capital,” the Founder of The Climate Reality Project stated.

In Ghana, fossil fuels dominate the transport sector.

These vehicles and trucks release nitrogen oxides into the atmosphere which contribute to the formation of smog and acid rain.

Fossil fuel - a generic term for non-renewable energy sources - such as coal, coal products, natural gas, derived gas, crude oil, petroleum products and non-renewable waste.

Coal, oil, and natural gas are examples of fossil fuels because they contain carbon and hydrogen which can be burned for energy.

The Climate Reality Project, a non-profit climate action organization founded by former US Vice President Al Gore, hosted the 54th Climate Reality Leadership Training in Accra, Ghana.

The 3-day training formed part of The Climate Reality Project’s series of global training programmes aimed to educate and equip advocates with the tools they need to effectively advance climate solutions.

SA/MA