Energy Subsidies & Incentives

Governments use subsidies and incentives to shape energy markets, lower consumer costs, and encourage investment. These financial tools can support clean energy development—or prolong fossil fuel use.

Types of Support
Subsidies include tax breaks, direct payments, and fuel price controls. Incentives for clean energy range from feed-in tariffs and renewable tax credits to electric vehicle rebates and energy efficiency grants.

Market Influence
While clean energy incentives help drive innovation and scale, fossil fuel subsidies can distort markets by making polluting fuels artificially cheap, discouraging transition.

Reform & Transparency
Calls for subsidy reform focus on aligning public spending with climate goals. Phasing out harmful subsidies and redirecting funds toward clean, equitable solutions is a growing international priority.