Fossil Fuel Subsidies & Sustainable Development

Beijing—September 16—The first estimate of subsidies to coal producers in China, totaling CNY35.7 billion (US$5.6 billion) in 2013, has been revealed by the Global Subsidies Initiative (GSI) at the Coal and Renewable Energy event held in Beijing on 16 September 2015.

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.

The elimination of fossil-fuel subsidies would make a significant contribution to this shared objective.

Because electricity is an essential commodity for everyday life, the Chinese government mostly regulates its retail price. This paper reviews and evaluates the TEP reform, examining the impacts on equity, efficiency and subsidy expenditure. It also looks at how problems associated with the reform were addressed, and the form and mode of communication with stakeholders.

As part of its work on energy policy and sustainable development in Indonesia, the Global Subsidies Initiative publishes a regular briefing on issues related to energy subsidies.

The International Institute for Sustainable Development (IISD) presented its vision of renewable energy development to the Sustainable Development Working Group of the Arctic Council in Whitehorse on March 1, 2015.

This report, produced by IISD-GSI provides input to the Nordic Council of Ministers by identifying options and opportunities for increased Nordic cooperation on the phasing out of fossil-fuel subsidies in developing countries. The research explores existing Nordic cooperation efforts in the fields of energy, climate change and extractives, outlines Nordic development trends and priorities, proposes partner countries, identifies potential areas of cooperation, and presents four recommendations for future action. Savings enable governments to manage deficits—they can be redirected at building sustainable energy networks or targeted at social spending.

This report from the Global Subsidies Initiative of IISD was launched in conjunction with the Asia Europe Foundation, at a conference exploring the financing of future Sustainable Development Goals (September 29–30, 2014).