Fossil Fuel Subsidies Hit $7 Trillion: Why Transport Can’t Decarbonise Without Reform

May 2, 2026

$7 trillion. That’s what governments spent on fossil fuel subsidies in 2023.

The same year of the first Global Stocktake. The same year EV sales broke records. The same year transport emissions hit new highs.

In a single year, governments spent enough on fossil fuel subsidies to fund nearly three years of the entire transport transition, estimated at $2.7 trillion annually until 2050.

The money exists. It is being spent on the wrong things.

Our latest GSR Explained piece unpacks the four paradoxes behind that number: why fossil fuels still supply 95.4% of transport energy, why only 4 out of 110 new NDCs mention subsidy phase out, and why the carbon budget runs out in 2032.

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