UNEP says fossil fuel subsidies undermining green economy

Fossil fuel subsidies of 500 billion U.S. dollars globally have been a drawback to green and inclusive growth in many countries, the United Nations Environment Programme (UNEP) said on Monday.

UNEP Executive Director Achim Steiner told a forum on reforming fossil fuel subsidies that a revamp of current fossil fuel subsidies is critical to buffer countries from economic shocks, uncontrolled carbon emissions and social unrest.

"Fossil fuel subsidies are a drain on public finances and have not been socially and environmentally feasible. Countries are better off if they phase out subsidies on the hydrocarbons," Steiner said.