Fossil fuel subsidies drop as renewable energy gains

New York

COUNTRIES from Mexico to Germany and Malaysia are increasingly taking advantage of cheap oil by trimming fossil-fuel subsidies, easing the way for renewable power that can help the environment, according to the chief economist of the International Energy Agency (IEA).

With the global cost of crude cut by more than half, Fatih Birol said the IEA has scrapped a forecast that had subsidies reaching US$660 billion by 2020. In the group's latest report, fossil fuel producers were paid US$548 billion in 2013 - a US$26.5 billion decline that was the first drop in four years.