Energy
Fossil Fuel Subsidies Hamper Pathway to Inclusive Green Economy – Experts
By URIRI Leo
NAIROBI – According to experts, Fossil fuel subsidies are contributing to fiscal instability and undermining governments’ efforts to combat serious economic and environmental challenges, such as climate change, and the transition to an inclusive green economy.
“Reforming Fossil Fuel Subsidies for an Inclusive Green Economy” is the theme of the two-day event co-organized by UNEP, IMF, GIZ and the Global Subsidies Initiative of IISD. Sessions will focus on how fiscal policies can address the perverse effects of fossil fuel subsidies and strengthen government spending for sustainable development.
The Intergovernmental Panel on Climate Change recently reported that CO2 emissions from fossil fuel combustion and industrial processes were responsible for approximately 78 per cent of the total increase in greenhouse gas emissions between 1970 and 2010.
Experts say reducing or eliminating harmful fossil fuel subsidies – and properly pricing energy to account for environmental impacts – is one of the most promising ways governments can promote a transition to a greener economy, and even the playing field for investments in energy efficiency and renewable energy.
Subsidies to producers often support inefficient state-owned energy companies and stifle incentives for greater efficiencies and innovation, while subsidies to consumers often encourage excessive consumption, which has knock-on effects for pollution, human health and greenhouse gas emissions.
Globally, fossil fuel subsidies are estimated to be in the range of US$500 billion. When taking into account implicit subsidies from the failure to charge for pollution, climate change and other externalities, the IMF estimates the post-tax subsidy figure is closer to $2 trillion worldwide – equivalent to about 2.9 per cent of global GDP, or 8.5 per cent of government revenues. Furthermore, it finds the removal of such subsidies could lead to a 13 per cent decline in CO2 emissions.
In comparison, according to the International Energy Agency, global subsidies to the renewable energy industry were $88 billion in 2011.
“Fiscal policies are of particular importance in a green economy transition. Confronted by a fiscally constrained world, government reforms might appear to be a daunting challenge,” said UN Under-Secretary-General and UNEP Executive Director Achim Steiner.
“However, it is important to note that fossil fuel subsidies cost countries precious funds. For example, they divert government resources from pro-poor spending in Africa, where governments spend an estimated 3 per cent of GDP – equivalent to their total health care allocation – on fossil fuel subsidies,” he added.
Several countries, including Ghana, Namibia, the Philippines and Turkey, have all shown that it is possible to reform energy subsidies and prices. UNEP is currently undertaking green economy fiscal policy studies in several countries, including Ghana, Kenya and Mauritius, which will inform the respective governments as they advance their fiscal policy reforms.
Experts are calling on governments to use government policies to leverage private investment in green sectors by redirecting public investments to clean technologies and providing direct public expenditure for research and development. For example, tax incentives could make investments in clean technologies more attractive, while government funds could reduce the risk profile of capital intensive new technologies.
In addition, experts acknowledge that, in some cases, eliminating these subsidies could have ramifications on the poor or weaken the competitiveness of domestic industries. Therefore, they said, social protection measures are needed to ensure vulnerable groups are not overlooked and receive assistance during a transition period.
Energy
IEA Puts UAE’s Oil Output at 5.3mbpd for September
Oil output from the United Arab Emirates (UAE) rose to record levels in September, underscoring its resilience even amidst the Middle East crises and liberation from OPEC+ limits.
The International Energy Agency (IEA) issued the data in its monthly report, adding that Abu Dhabi raised total oil production, including condensates, by 400,000 bpd to 5.3 MMbpd.
According to the IEA, the UAE bolstered crude output to more than 4.4 MMbpd, nearing its maximum capacity, which surpasses the previous highs for total oil in August, and crude oil in June.
READ ALSO: Africa’s Energy Security Conversations Pull Industry Executives Together
The UAE has been one of the most successful among regional producers in restoring flows through the Strait of Hormuz, by drawing on a fleet of tankers to discreetly shuttle cargoes through the chokepoint and then transfer them onto other vessels. In addition, the country’s decision to leave the Organization of the Petroleum Exporting Countries (OPEC) as of May has freed it from the group’s output caps, a source of frustration for years.
Its gains contributed to a wider recovery in flows from Gulf producers, which reached more than 75% of pre-war levels in September, led by Saudi Arabia, according to the Paris-based IEA.
Still, it’s unclear how far the regional rebound has withstood a new wave of Iranian attacks on tankers transiting Hormuz, and escalating hostilities carried out by the Houthi rebel faction in Yemen.
The UAE depleted its observable above-ground inventories at a record pace of more than 270,000 bpd in September, drawing them to an all-time low, according to the IEA.
Energy
Africa’s Energy Security Conversations Pull Industry Executives Together
Africa’s gas potential and strengthening the continent’s energy security would take centre stage at the Africa Interviews Sustainability Forum (AISF 2026) scheduled for Wednesday, October 21, in Lagos.
Biztellers reports that top officials of Oando Plc and Renaissance Africa Energy Company Limited, Ayotola Jagun and Tony Attah, respectively, will be leading other industry leaders in the discussion.
Jagun, Oando’s Executive Director, Chief Corporate Services and Sustainability Officer, and Attah, Managing Director and Chief Executive Officer of Renaissance Africa Energy Company Limited, will participate in a panel discussion alongside Lamé Verre of Lean In Equity & Sustainability (LiNES) and Dapo Filani, Managing Director and Chief Executive Officer of Waltersmith.
The panel will examine Africa’s energy security and the role of natural gas in the continent’s energy transition.
READ ALSO: 30 Nigerians Bag Postgraduate Scholarship from NNPC Ltd, Eni
The forum, launched in 2024, is holding its third edition under the theme, “Energy Security and Africa’s Energy Transition: Defining the Role of Gas.”
This year’s gathering will explore how African countries can strengthen energy security, attract investment in gas development and balance growing energy demand with sustainability objectives.
Verre, a London-based energy and sustainability executive, is Co-founder and Chair of the Advisory Board of LiNES. She will bring her international experience in sustainability, decarbonisation and low-carbon development to the discussion. Her work spans low-carbon initiatives across sectors, including marine, the built environment, forestry, land and agriculture.
Jagun brings extensive experience in corporate governance, regulatory compliance, enterprise risk management and sustainability. Her contribution will provide a corporate sustainability and governance perspective on the relationship between energy development, environmental responsibility and Africa’s transition priorities.
Attah, a former Managing Director and Chief Executive Officer of Nigeria LNG Limited, has extensive experience in the oil and gas industry, particularly in natural gas development and major energy operations.
Filani leads Waltersmith, an indigenous Nigerian energy company with interests across the oil and gas value chain. His participation will highlight the role of indigenous energy companies in strengthening domestic energy capacity and supporting economic development.
The panel will consider what is required to unlock greater investment in Africa’s gas sector, how natural gas can support industrial growth while advancing sustainability, and what practical measures could help translate the continent’s energy ambitions into tangible outcomes.
Beyond the panel discussion, AISF 2026 will provide opportunities for engagement among senior energy executives, policymakers, investors and business leaders.
Energy
Middle East Push, G7’s Strategic Reserve Release Arrest Oil Prices
Oil prices on Monday went south, after crude exports from the Middle East rose above pre-war levels, while the Group of Seven nations pledged to release 100 million barrels of crude and diesel from emergency reserves.
Brent crude futures fell by $1.20, or 1.17 percent, to $101.05 a barrel, while West Texas Intermediate crude declined by $1.16, or 1.27 percent, to $89.95 per barrel, according to Reuters.
Middle Eastern crude exports exceeded pre-war levels on four of the seven days in the final week of September, shipping data showed, despite attacks on vessels passing through the strategic Strait of Hormuz.
The increase in exports, combined with the G7’s planned release of emergency stocks, helped put downward pressure on crude prices.
The G7 countries agreed on Friday to release 100 million barrels of diesel and crude from emergency reserves and pledged to refrain from energy export restrictions following pressure from United States President Donald Trump.
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However, the scale of the additional supply remained uncertain.
IEA Executive Director, Fatih Birol, said last week that member countries had already released about two-thirds of the 400-million-barrel volume.
Meanwhile, supply concerns remained elevated as fighting continued across parts of the Middle East.
Saudi Aramco Chief Executive Officer, Amin Nasser, also warned that crude oil and refined fuel supplies were expected to remain stretched.
He said rebuilding global stockpiles after emergency withdrawals could take two years.
The United States Strategic Petroleum Reserve fell to 283 million barrels last week, its lowest level since October 1982, according to data from the US Department of Energy.
The supply outlook was further complicated by the continuing conflict involving Saudi Arabia and Iran-backed Houthi forces in Yemen.
Yemeni government forces attacked Houthi positions in the Dhubab district overlooking the Bab el-Mandeb Strait on Monday, according to two military sources.
The development came a day after the internationally recognised government launched a campaign to retake Houthi-held territory.
Meanwhile, OPEC+ postponed a review that would determine its 2027 oil output quotas after the war involving Iran disrupted projects aimed at expanding production capacity across the Middle East.





