By propping up fossil fuel production with $2 trillion per year in subsidies, governments are distorting markets in a way that discourages clean energy innovation, writes social venture investor Joel Solomon, chair of Vancouver-based Renewal Funds, in a Globe and Mail op ed.
“Left to the market, the fossil fuel industry could not survive in its current form. The industry only appears strong because of that $2-trillion in public subsidies—public funds awarded by short-sighted governments because of oil industry lobbyists.”
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But “providing artificial stimulus to a declining industry is not just creating financial risks; it’s holding our economy back,” he writes. “Governments and markets should be signalling to entrepreneurs that it’s time for innovation. At a minimum, stimulus should be incrementally shifted to support clean technology and associated infrastructure changes.”
