Background Note on Fossil Fuel Subsidy Reform
As fossil fuel subsidies are expected to swell following rapidly rising energy prices, IISD offers a background note on the rationale and international initiatives for reforming fossil fuel subsidies.
-
Fossil fuel subsidies roared back to 2018 levels in 2021 and will further swell following soaring energy prices, harming both environment and international trade. International cooperation needs to provide a pathway to meaningful fossil fuel subsidy reform.
-
The G7, G20, and Asia-Pacific Economic Cooperation economies pledged to rationalize and phase out inefficient fossil fuel subsidies that encourage wasteful consumption. New World Trade Organization initiatives could provide a meaningful platform to exchange information about the best ways forward.
-
At least 53 countries have made individual efforts to reform fossil fuel subsidies. Can international pledges by the G7, G20 or Asia-Pacific Economic Cooperation be turned into a collective effort to rationalize the support that has serious impacts on both environment and trade?
In addition to providing an overview of the environmental and trade effects of fossil fuel subsidies, it also examines international pledges and steps already taken by governments aiming to rationalize and reduce such support, including through the initiatives that take place through the G7, G20, Asia-Pacific Economic Cooperation, United Nations Framework Convention on Climate Change, and the new trade and environment initiatives at the World Trade Organization.
Participating experts
You might also be interested in
COP 29 Must Deliver on Last Year’s Historic Energy Transition Pact
At COP 29 in Baku, countries must build on what was achieved at COP 28 and clarify what tripling renewables and transitioning away from fossil fuels means in practice.
G20 Governments are Spending Three Times as Much on Fossil Fuels as Renewables
G20 governments are spending three times as much on fossil fuels as renewables, research by the International Institute for Sustainable Development shows.
Border Carbon Adjustments: Pivotal design choices for policy-makers
This policy brief covers the pivotal choices in the design of border carbon adjustments, aiming to provide useful insights to policy-makers and set the ground for the broader discussions about the best practices.
Border Carbon Adjustments: Priorities for international cooperation
This IISD policy brief looks into border carbon adjustment design elements that are priorities for international cooperation, as well as the possible venues, formats, and shapes that such a discussion might take.