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G20 agrees to phase out fossil fuel subsidies-draft

Published 09/25/2009, 12:58 AM
Updated 09/25/2009, 01:03 AM

PITTSBURGH, Sept 25 (Reuters) - The G20 has agreed to phase out subsidies on oil and other fossil fuels in the "medium term" and said it would intensify efforts to reach a U.N. deal on climate change later this year, a draft statement said.

The draft communique obtained by Reuters said G20 leaders tasked their finance ministers to come up with a range of options for climate finance -- payments from rich countries to poor countries dealing with global warming -- at their next meeting.

Governments in several G20 countries subsidize fuel such ascoal and oil to keep prices artificially low for consumers, boosting demand for hydrocarbons and emissions from them, and so contributing to global warming.

The G20, grouping major rich and emerging economies, is holding a two-day summit in Pittsburgh.

(Reporting by Jeff Mason and Darren Ennis, Editing by Frances Kerry)

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