Fossil Fuel Subsidies and Climate Change Policy
Environment & Ecology
- PYQs8
- Articles1
Background
India is a major energy consumer and producer, balancing energy security, economic growth, and climate commitments. Understanding global trends in fossil fuel policy, their climate implications, and the challenges of transitioning to cleaner energy is crucial for India's sustainable development strategy and international negotiations.
Fossil fuel subsidies refer to government actions that lower the price of fossil fuels for consumers or producers, or raise the revenues of fossil fuel companies. These policies often conflict with climate change mitigation efforts by incentivizing the production and consumption of high-emission energy sources, thereby hindering the global transition to sustainable energy systems.
Facts & tables
- Primary Driver of Climate Change
- Fossil fuels (coal, oil, gas) are the primary drivers of human-induced climate change due to greenhouse gas emissions.
- Impact of Subsidies and Regulatory Rollbacks
- Government subsidies and regulatory rollbacks can artificially lower the cost of fossil fuels, hindering the transition to renewable energy.
- International Stance
- International bodies advocate for phasing out inefficient fossil fuel subsidies to meet global climate targets.
- US Coal Generation Trend
- The US, contrary to global trends, substantially increased coal power generation in 2025, as per the article.
| Type | Reference |
|---|---|
| Conceptual area | Energy Security |
| Conceptual area | Climate Change Mitigation |
| Conceptual area | Environmental Governance |
| Body | Role |
|---|---|
| United Nations Framework Convention on Climate Change (UNFCCC) | Sets global climate goals and facilitates international cooperation |
Prelims angle
Prelims angle: Multi-statement analysis
Prelims angle: Factual recall
- Fossil fuel subsidies include direct financial aid, tax breaks, and public financing.
- These policies conflict with climate goals by incentivizing high-emission energy consumption.
- International bodies call for phasing out inefficient fossil fuel subsidies.
- Policy reversals on environmental regulations exacerbate climate change impacts.
- India faces the challenge of balancing energy needs with climate action and sustainable development.
| Year | Framing tags |
|---|---|
| 2025 | Multi-statement analysis, Factual recall |
| 2024 | Factual recall, Conceptual understanding |
| 2022 | Multi-statement analysis, Factual recall |
| 2020 | Multi-statement analysis, Factual recall |
| 2016 | Statement-based questions, Factual recall |
| 2016 | Policy measures, Purpose or function of a policy tool |
| 2016 | Statement-based questions, Factual recall |
| 2014 | Statement-based questions, Factual recall |
Timeline
-
Energy Security
Conceptual area
-
Climate Change Mitigation
Conceptual area
-
Environmental Governance
Conceptual area
-
Prelims 2014
Statement-based questions, Factual recall
-
Prelims 2016
Statement-based questions, Factual recall
-
Prelims 2016
Policy measures, Purpose or function of a policy tool
-
Prelims 2016
Statement-based questions, Factual recall
-
Prelims 2020
Multi-statement analysis, Factual recall
-
Prelims 2022
Multi-statement analysis, Factual recall
-
Prelims 2024
Factual recall, Conceptual understanding
-
Prelims 2025
Multi-statement analysis, Factual recall
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Trump announces $700 million funding for coal plants, energy infrastructure
Government support for fossil fuels, through subsidies or regulatory rollbacks, directly counteracts climate change mitigation goals by promoting high-emission energy sources and delaying the shift to sustainable energy.
See also
No related topics linked yet.
Past papers
2014–2025 · 8 questions
In the news
Trump announces $700 million funding for coal plants, energy infrastructure
Government support for fossil fuels, through subsidies or regulatory rollbacks, directly counteracts climate change mitigation goals by promoting high-emission energy sources and delaying the shift to sustainable energy.
Try these PYQs
Consider the following statements:
1. "The Climate Group" is an international non-profit organization that drives climate action by building large networks and running them.
2. The International Energy Agency in partnership with the Climate Group launched a global initiative "EP100".
3. EP100 brings together leading companies committed to driving innovation in energy efficiency and increasing competitiveness while delivering on emission reduction goals.
4. Some Indian companies are members of EP100.
5. The International Energy Agency is the Secretariat to the "Under2 Coalition".
Which of the statements given above are correct?
Statement 1 is correct. The CLIMATE GROUP is an international non-profit organization founded in 2003, with offices in London, New York, New Delhi, Amsterdam, and Beijing. Its mission is to drive rapid climate action. This group builds and runs networks. Statement 2 is incorrect. EP100 is a global initiative led by The Climate Group and the Alliance to Save Energy (not by the International Energy Agency). Statement 3 is correct. The Climate Group's global EP100 initiative brings together a growing cohort of energy-smart companies committed to improving their energy productivity and reducing greenhouse gas emissions. By incorporating ambitious energy targets into their business strategies, leading companies are fostering innovation in energy efficiency, enhancing competitiveness, and achieving emissions reduction goals. Statement 4 is correct. EP100 has a global reach, with member companies operating in over 130 markets worldwide. India's Mahindra Group is among the frontrunners in the ongoing efforts to decrease energy consumption and carbon dioxide emissions by transitioning to renewable energy sources. Statement 5 is incorrect. The Climate Group serves as the Secretariat for the Under2 Coalition and collaborates with governments to expedite climate action through four main workstreams - Pathways, - Policy Action, - Transparency, and - Diplomacy.
One of the following regions has the world's largest tropical peatland, which holds about three years worth of global carbon emissions from fossil fuels; and the possible destruction of which can exert detrimental effect on the global climate. Which one of the following denotes that region?
Congo Basin Peatlands: The Congo Basin in Central Africa is home to the world's largest tropical peatland complex. This vast peatland stores an immense amount of carbon, estimated to be equivalent to about three years of global fossil fuel emissions. Importance of Peatlands: Peatlands are a critical carbon sink. They store more carbon than all the world's forests combined. When peatlands are drained or degraded, this stored carbon is released into the atmosphere, contributing to climate change. The Republic of Congo, the Democratic Republic of Cong and Indonesia are parties to the Brazzaville Declaration, aimed at protecting the Cuvette Centrale region in the Congo Basin, the world’s largest tropical peatlands, from unregulated land use and preventing its drainage and degradation. _Other Options:_ * Amazon Basin: While the Amazon is known for its vast rainforests, it is not the primary location of the world's largest tropical peatland. * Kikori Basin: The Kikori Basin is located in Papua New Guinea and contains significant peatlands, but not the largest tropical peatland complex. * Rio de la Plata Basin: This basin in South America is primarily known for its grasslands and is not associated with major peatland areas.
Consider the following pairs
| International Agreement | Set-up Subject |
|--------------------------|----------------------------|
| 1. Alma-Ata Declaration | Healthcare of the people |
| 2. Hague Convention | Biological and chemical weapons |
| 3. Talanoa Dialogue | Global climate change |
| 4. Under2 Coalition | Child rights |
Which of the pairs given above is/are correctly matched?
Pair 1 is correctly matched. Alma Ata Declaration: The Declaration of Alma-Ata was adopted at the International Conference on Primary Health Care, Almaty, Kazakhstan, 612 September 1978. It expressed the need for urgent action by all governments, all health and development workers, and the world community to protect and promote the health of all people. Pair 2 is not correctly matched. Hague Convention: The Hague Convention on the Civil Aspects of International Child Abduction or Hague Abduction Convention is a multilateral treaty developed by the Hague Conference on Private International Law that provides an expeditious method to return a child internationally abducted by a parent from one member country to another. Pair 3 is correctly matched. The Talanoa Dialogue is a process designed to help countries implement and enhance their Nationally Determined Contributions by 2020. The Dialogue was mandated by the Parties to the United Nations Framework Convention for Climate Change to take stock of the collective global efforts to reduce the emissions of greenhouse gases, in line with the goals of the Paris Agreement. Pair 4 is not correctly matched. The Under2 Coalition is a global community of state and regional governments committed to ambitious climate action in line with the Paris Agreement. The coalition brings together more than 220 governments that represent over 1.3 billion people and 43% of the global economy. Signatories commit to keeping global temperature rises to well below 2C with efforts to reach 1.5C.
Consider the following statements:
1. The Sustainable Development Goals were first proposed in 1972 by a global think tank called the ‘Club of Rome’.
2. The Sustainable Development Goals have to be achieved by 2030.
Which of the statements given above is/are correct?
In 1972, Countries met in Stockholm, Sweden, for the United Nations Conference on the Human Environment, to consider the rights of the family to a healthy and productive environment. In 1983, the United Nations created the World Commission on Environment and Development (later known as the Brundtland Commission), which defined sustainable development as "meeting the needs of the present without compromising the ability of future generations to meet their own needs". Statement 1 is incorrect. Colombia proposed the idea of the SDGs at a preparation event for Rio20 held in Indonesia in July 2011. Statement 2 is correct. The Sustainable Development Goals are the blueprint to achieve a better and more sustainable future for all. They address the global challenges we face, including those related to poverty, inequality, climate, environmental degradation, prosperity, and peace and justice. The consensus is that these SDGs have to be achieved by 2030.
Consider the following statements:
I. Carbon dioxide (CO₂) emissions in India are less than 0.5 t CO₂/capita.
II. In terms of CO₂ emissions from fuel combustion, India ranks second in Asia-Pacific region.
III. Electricity and heat producers are the largest sources of CO₂ emissions in India.
Which of the statements given above is/are correct?
India’s CO₂ emissions come mainly from fuel combustion, especially electricity generation, and per capita emissions are higher than 0.5 tonnes. ❌ Statement I is incorrect:
* India’s per capita CO₂ emissions are around 1.9-2.0 tonnes, higher than 0.5 t CO₂/capita. ✅ Statement II is correct:
* India ranks second in the Asia-Pacific for total CO₂ emissions from fuel combustion, after China. ✅ Statement III is correct:
* Electricity and heat production (mainly coal-based) is the largest source of India’s CO₂ emissions. So, the correct answer is: C
Show 3 more PYQs
Which of the following best describes the aim of ‘Green India Mission’ of the Government of India?
1. Incorporating environment benefits and costs into the Union and State Budgets thereby implementing the ‘green accounting’.
2. Launching the second green revolution to enhance agriculture output so as to ensure food security to one and all in the future.
3. Restoring and enhancing forest cover and responding to climate change by a combination of adaptation and mitigation measures.
Select the correct answer using the code given below
The National Mission for Green India (GIM) is one of the eight Missions outlined under the National Action Plan on Climate Change (NAPCC). Mission Goals:
- To increase forest/tree cover to the extent of 5 million hectares (mha) and improve quality of forest/tree cover on another 5 mha of forest/non-forest lands;
- To improve/enhance ecosystem services like carbon sequestration and storage (in forests and other ecosystems), hydrological services and biodiversity; along with provisioning services like fuel, fodder, and timber and non-timber forest produces (NTFPs); and
- To increase forest-based livelihood income of about 3 million households.
Consider the following statements regarding ‘Earth Hour’:
1. It is an initiative of UNEP and UNESCO.
2. It is a movement in which the participants switch off the lights for one hour on a certain day every year.
3. It is a movement to raise awareness about climate change and the need to save the planet.
Which of the statements given above is/are correct?
Statement 1 is Incorrect: Earth Hour is an initiative organized by the World Wildlife Fund (WWF). Statement 2 is Correct: Earth Hour is a global movement encouraging individuals, businesses, and landmarks to switch off non-essential lights for one hour every year, typically on the last Saturday of March. Statement 3 is Correct: This symbolic act aims to raise awareness about climate change, the need for sustainable practices, and the importance of energy conservation.
With reference to the Agreement at the UNFCCC Meeting in Paris in 2015, which of the following statements is/are correct?
1. The Agreement was signed by all the member countries of the UN and it will go into effect in 2017.
2. The Agreement aims to limit greenhouse gas emissions so that the rise in average global temperature by the end of this century does not exceed 2 degrees C or even 1.5 degrees C above pre-industrial levels.
3. Developed countries acknowledged their historical responsibility in global warming and committed to donate $1000 billion a year from 2020 to help developing countries to cope with climate change.
Select the correct answer using the code given below.
Statement 1 is incorrect: The agreement did not "go into effect in 2017." It was adopted in Dec 2015, signed in April 2016, and legally entered into force on November 4, 2016, after the "55/55" threshold (55 countries representing 55% of global emissions) was met. Statement 2 is correct: This is the core "temperature goal" of the Paris Agreement: keeping the increase well below 2°C and pursuing efforts to limit it to 1.5°C above pre-industrial levels. Statement 3 is incorrect: While the agreement acknowledges "Common But Differentiated Responsibilities" (CBDR), the financial commitment was $100 billion per year by 2020, not $1000 billion.