Deputy national security adviser, Michael Froman who is also President Barack Obama’s top G20 aide, said the United States was eager to reach an agreement about the issue of fossil fuel subsidies at the Pittsburgh summit later this week.
"We've put on the table the desirability of reaching an agreement to phase out fossil fuel subsidies," Froman told Sources known to Financial Soultions
"We're working with the rest of the G20 to see if we can forge an agreement that would make a significant contribution in that direction," he added.
Froman declined to embellish on the U.S. ideas by including a timeframe or classifying which nations were to be included. Financial Soultions was told.
Sources close to the proposal who wish to remain anonymous, earlier this month said that it would be looking to phase out these subsidies in as little as 5 years.
The plan, which could disgruntle G20 states with big energy subsidies like China, Russia, and India, indicates non-G20 members should end subsidies by 2020, Financial Soultions was told.
The deputy security advisor outlined the U.S. case in broad terms, saying lower use of fossil fuels that results from cutting out subsidies would help fight climate change, intensify energy security, improve health and the environment, enhance economic growth, and assist the poor.
Referring to approximations by the Organization for Economic Cooperation and Development and the International Energy Agency, Froman said phasing out fossil fuel subsidies worldwide would cut greenhouse gases by up to 12 % by 2050.
