
The figure quoted as $7.4 trillion in annual fossil fuel subsidies is mostly not money changing hands. About $6.7 trillion of it is damage the IMF says goes uncharged, three-quarters of that from air pollution and climate, on a definition other agencies reject.
Explicit fossil fuel subsidies came to $725 billion in 2024. The figure usually quoted is ten times larger because the IMF counts uncharged environmental damage as a subsidy as well, a definition the OECD and the IEA reject. The damage is not what is in dispute. The total attached to it rests on a contested accounting choice, and the mortality estimates underneath it differ by more than a factor of two.
By Terra Daily Editorial Team · Sep 12, 2026















