Environment
Green transition provides a crucial opportunity to finance universal health coverage
Key Points
The green energy transition is opening up potential sources of new finance that could be used to fund universal health coverage (UHC) in low and middle income countries. Fossil fuel subsidies—government support that keeps energy prices below supply costs, whether through direct payments, state owned utility losses, or price controls—can account for a large proportion of government spending.1 Reducing these subsidies as part of a shift away from fossil fuels, alongside introducing carbon...
The green energy transition is opening up potential sources of new finance that could be used to fund universal health coverage (UHC) in low and middle income countries. Fossil fuel subsidies—government support that keeps energy prices below supply costs, whether through direct payments, state owned utility losses, or price controls—can account for a large proportion of government spending.1 Reducing these subsidies as part of a shift away from fossil fuels, alongside introducing carbon pricing and capturing new royalties from critical minerals, would provide extra resources for public services. Health systems, which bear current and future health consequences of fossil fuel use and mining activities, have a strong argument for benefiting from these resources, but how much reaches those in greatest need will depend on political decisions and good governance.Fossil fuel subsidies crowd out health spendingFossil fuel subsidies remain large, widespread, and acutely sensitive to international oil prices. When Russia invaded...