U.N. On Climate Change Crisis: For Every Dollar Pledged, $4 Was Spent On Fossil Fuel Subsidies

The world spends $423 billion a year on fossil fuel subsidies, according to a report from the U.N. to promote its Don't Choose Extinction campaign. The campaign, meant to raise awareness about the environmental impact of fossil fuels, partners with celebrities Jack Black, Eiza González, Nikolaj Coster-Waldau and Aïssa Maïga to promote the cause.

By the U.N.'s estimate, about $1 is pledged to tackle climate change in low-income countries for every $4 spent on fossil fuel subsidies. It says the world has largely not lived up to its $100 billion promise to tackle climate change.

In low-income countries, half of the public resources spent on fossil fuel consumption benefits 20% of the population, according to the International Monetary Fund.

The energy sector globally accounts for 73% of human-made greenhouse gas emissions. According to another report, world governments plan to produce over twice the amount of fossil fuels in 2030 rather than reducing consumption.

While spending on fossil fuels is often justified to give low-income populations access to energy, as climate-sustainable alternatives are not cheaper yet, the spending on fossil fuels actually drives inequality globally.

Achim Steiner, the head of the United Nations Development Programme, told CNBC, “In the last couple of years alone, there is more invested in new renewable energy infrastructure, and therefore invested in the construction and bringing it on stream, than in oil, gas, coal and nuclear combined."