Graphic Truth: Global fossil fuel subsidies on the rise

Annie Gugliotta

In 2022, the International Monetary Fund crunched the numbers and found that governments were spending a whopping $7 trillion on fossil fuel subsidies. The colossal sum spent on these grants and tax incentives was largely driven by the war in Ukraine and its ripple effect on energy prices. But it wasn’t an outlier; the trend had already been on an upward trajectory as economies surged in the Global South, which suggests it is likely to continue unless there is a global transition to green energy.

To put these numbers into perspective, government backing for fossil fuels represents over 7% of the world's GDP, dwarfing other crucial budget items like education spending, which amounts to a mere 4.3% of the global GDP.

According to the IMF, curbing these subsidies could not only realign humanity with climate goals but also save 1.6 million lives annually and boost government coffers by $4.4 trillion.

More from GZERO Media

- YouTube

As the US economy continues to defy expectations, Eurasia Group Managing Director of Global Macro Robert Kahn says the key question is whether a slowdown has been avoided or merely delayed. “The headline here is the impressive resilience of the US, maybe also the global economy over the last six months,” Kahn tells GZERO Media’s Tony Maciulis on the sidelines of the 2025 World Bank–IMF Annual Meetings.

- YouTube

Yes, this is real. Puppet Regime Ministry of Merchandise is now OPEN. Head to www.shop.puppetregime.tv to show everyone on the bloc that you support The Regime VERY STRONGLY. #PUPPETREGIME

Former UK prime minister Tony Blair and Egyptian President Abdel Fattah el-Sisi attend the world leaders' summit on ending the Gaza war, in Sharm el-Sheikh, Egypt, on October 13, 2025.

Egyptian Presidency/Handout via REUTERS

At first glance, it might seem odd that Tony Blair is leading the Western proposal for the future of Gaza.

- YouTube

As a landmark Gaza ceasefire reshapes Middle East stability, what does it mean for Egypt’s growth outlook? Egypt’s Minister of Planning, Economic Development, and International Cooperation, Rania Al-Mashat tells GZERO’s Tony Maciulis the deal is “a monumental moment” and durable.

- YouTube

As the global economy faces uncertainty, Axel van Trotsenburg, Senior Managing Director of the World Bank, warns that “a wait-and-see attitude” is holding back investment and growth, especially in developing countries. Speaking with GZERO Media’s Tony Maciulis on the sidelines of the 2025 World Bank-IMF Annual Meetings, van Trotsenburg highlights human capital and infrastructure as key priorities, with a growing urgency to bridge both the digital and AI divides.