The environmental audit committee has begun an investigation into the government’s distribution of subsidies for nuclear power, fossil fuels and renewable energy.
The committee will look to define exactly what a subsidy is, while also examining whether finance is spread appropriately across the different energy sources.
This comes less than a month after the International Monetary Fund (IMF) called for a complete overhaul of global subsidies. It said the current system causes more inequality and slows down growth, instead of helping consumers.
Another recent study, by the Overseas Development Institute (ODI), revealed the extent to which many wealthy nations were contradicting their fights against climate change by pumping money into fossil fuel exploration. Authors claimed the current system was “skewing the field” against green investment.
Inquiry launched to ‘get to the bottom’ of UK energy subsidies