The 56% reduction in the annual value of this subsidy follows the fall by about a half of oil and gas capital investments between 2015 and 201959, indicating the 11 reduction in qualifying expenses to be the driving factor in the context of unchanged subsidy regime. [...] At the 2020 Budget, the UK Government committed to remove most of the Red Diesel exemptions starting from the 2022 financial year, and stated the step reflected the UK’s commitment to reach net zero by 2050.68 This welcome move suggests that, contrary to its assertions otherwise, and lack of action on other subsidies, the government recognises the incompatibility of fossil fuel support with its cl. [...] Given the latest OECD release lacks the estimates for some of those reliefs, we use the latest figures available from the HMRC for 2019-20, and impute figures for 2020-21 by adjusting the previous, pre-pandemic figures downwards in line with the fall of UK GDP, to align them with the estimates available in the data which indicate contraction in the level of support corresponding to the overall eco. [...] 1 Changing the definition to change the debate common-wealth.co.uk By continuing to align its definition of fossil fuel subsidies with the IEA, as opposed to the methods more attuned to the WTO and OECD approaches, the UK obscures the scale of our effective fossil fuel subsidisation. [...] Second, in presenting a fuller picture of the scale of subsidisation, the UK can address the issue of opaqueness embedded in the current methodology, with the country currently ranking joint last among the G20 OECD members in the fossil fuel funding G20 scorecard, which aims to track each of the G20 countries' progress in ending government support to fossil fuels, as well as boosting accountabilit.
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