Fossil Fuel Subsidies

A Guidebook to Fossil-Fuel Subsidy Reform

There is no one-size-fits-all strategy for fossil-fuel subsidy reform—but there are a set of planning stages that are generic, along with many common issues, challenges and potential solutions. The purpose of this guide is to advise countries on the process for formulating an effective reform strategy that will fit their individual objectives and circumstances. It is aimed at policy-makers in Southeast Asia, but much of its guidance could apply to any region.

The guidebook draws together the experience that countries around the world have developed to prepare for fossil-fuel subsidy reform. It provides guidance on the pacing of reform as well as identifying good practice across three core elements:

  • Getting the prices right: how to change pricing systems for fossil fuels
  • Managing the impacts: estimating effects of reform and mitigating unwanted impacts
  • Building support: internal organization and external consultation and communication

 

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