The world’s largest fossil fuel importing economies spent about $314 billion subsidising fossil fuels in 2024, more than double their support for renewable energy, a new analysis has found.
Data compiled by the International Institute for Sustainable Development (IISD) shows nine of the top 10 importing economies allocated $313.6 billion to fossil fuel subsidies last year, compared with $121.7 billion for clean energy.
The imbalance means governments are spending roughly 2.5 times more on fossil fuels than on renewables, locking economies into “expensive, risky and volatile” energy systems, according to the report.
“These economies are paying twice over: once for subsidies and again when price shocks hit,” said Natalie Jones, a senior policy adviser at IISD.
The data highlights stark disparities among major economies. China led fossil fuel subsidies at $86.7 billion, followed by the European Union ($73 billion), India ($67.5 billion), Japan ($45.1 billion) and the United Kingdom ($23.5 billion).
Together, the top three accounted for nearly three-quarters of total subsidies.
While the European Union topped renewable energy spending at $47.7 billion, its fossil fuel support remained significantly higher. Japan’s clean energy subsidies nearly matched its fossil fuel spending, while Mexico recorded the widest gap, with fossil fuels receiving more than 330 times the support given to renewables.
Experts say such policies disproportionately benefit wealthier households. In middle-income countries, the richest 20 percent receive 11 times more in fossil fuel subsidies than the poorest 20 percent.
They argue that targeted cash transfers would better support vulnerable populations without deepening dependence on fossil fuels.
The report also points to examples of countries shifting towards cleaner energy systems. Germany and Türkiye have increased renewable energy investments, resulting in billions of dollars in avoided gas import costs in recent years.
Germany’s renewable support schemes saved an estimated €25 billion in gas imports in 2022, while Türkiye’s clean energy programme saved nearly $13 billion between 2022 and 2025, according to IISD calculations.
The findings come amid renewed global energy market volatility following disruptions in oil supply linked to geopolitical tensions in early 2026, which pushed crude prices above $100 per barrel.
Researchers warn that continued reliance on fossil fuels increases exposure to such shocks, while investments in renewables, electrification and energy efficiency offer more stable and cost-effective alternatives.
With more than 80 countries backing a global fossil fuel transition roadmap at last year’s COP30 climate conference, IISD urged governments to prioritise subsidy reform and redirect public spending toward clean energy and social protection.
“Another round of subsidies, another crisis — that is a choice, not an inevitability,” Jones said, calling for a shift in public finance to ensure long-term energy security and affordability.
