September 25, 2009

G20 in accord over oil subsidies

Group of 20 leaders in Pittsburgh has agreed in principal to phase out oil subsidies, while giving no deadline for doing so, a group statement said.

In a communique, national leaders Friday agreed to a November deadline to come up with a range of possible options for funding climate change mitigation efforts, but it did not come up with a concrete deadline to begin funding, The Wall Street Journal reported.

The directive concerning subsidies is to phase out programs over the medium term, which leaves it up to each G20 nation to set its own individual deadlines for phasing out the subsidies, the Journal said.

We will have our Energy and Finance Ministers, based on their national circumstances, develop implementation strategies and timeframes, the statement reads.

G20 countries also turned their focus on energy speculators, agreeing to direct relevant regulators to also collect related data on over-the-counter oil markets and to take steps to combat market manipulation leading to excessive price volatility.