This paper reviews international models of fossil-fuel subsidy reform and greenhouse gas emissions to support parties to the United Nations Framework Convention for Climate Change.

World leaders hailed that the climate change agreement, agreed on Saturday 12 December, was important and significant in terms of setting the framework for government action in the coming years. In this blog, the Global Subsidies Initiative (GSI) examines both the text of the agreement as well as the events and activities that took place throughout COP21 in Paris with regards to fossil fuel subsidy reform and the phased removal of around US$600 billion of government subsidies to fossil fuels. In summary, there was much momentum on the side-lines of the negotiating process. The content of the agreement itself, from the perspective of moving the issue of fossil fuel subsidy reform, is also a very positive step in the right direction for setting the framework and rules of the game on climate action.

Subsidies for the consumption of fossil fuels were estimated at US$550 billion in 2013, according to the International Energy Agency. This report by IISD and the Nordic Council of Ministers modeled the impact of removing fossil fuel subsidies in 20 countries between 2015 and 2020. The results show that this alone would reduce national emissions, against business as usual, by an average of 11 per cent. By taking 30 per cent of subsidy savings, and investing in renewable energy and energy efficiency, national emissions are reduced further to an average of 18 per cent by 2020. The report also includes case studies of reform in the Philippines, Morocco and Jordan.

In New York this weekend (25–27 September) over 100 heads of state and government attended the UN Sustainable Development Summit to adopt the "Sustainable Development Goals" (SDGs) – the development agenda for the world for the next fifteen years. The goals cover 17 areas including their "Means of Implementation", which is how these goals will be funded.

The international community reaffirmed commitments on Thursday 16th July 2015, within the Addis Ababa Action Agenda "to rationalize inefficient fossil-fuel subsidies that encourage wasteful consumption ..."  and "phasing out those harmful subsidies". Fossil fuel subsidy removal remains on the agenda and is as important as ever when governments are squeezed for fiscal space and domestic resource mobilisation.

Government negotiators are meeting in Bonn for climate talks this week (1-11 June 2015), to prepare for negotiations in Paris towards a climate deal at the end of the year. At the time of writing 39 countries have submitted their Intended Nationally Determined Contributions or INDCs.