Research released in a letter to Nature describes how a single policy instrument, fossil fuel subsidy reform (FFSR), could deliver carbon emission reductions of between 0.5 to 2 Gt, or between 1 and 4 per cent, globally by 2030.
This paper explores the concept of financial sustainability and proposes a framework to analyze electricity sectors based on this concept. Financial sustainability, as defined here, includes assessment of factors that directly present a cost—such as pricing electricity below the cost of production—in addition to those which may lead to additional costs in the future, such as an inability to make investments to respond to changes in demand.
Self- and peer reviews of government support to oil, gas and coal are a first step and practical tool for phasing out wasteful fossil fuel subsidies (FFS). The G7, G20, European Union and Asia-Pacific Economic Cooperation (APEC) governments have all committed “to rationalize inefficient FFS that encourage wasteful consumption.” But how can we support them?
Can the international trade system be a catalyst for reforming fossil fuel subsidies (FFSs) to help relieve the burden on the public purse, reduce local and global air pollution, improve energy security and tackle climate change?
Donald Trump won the US presidency railing against “job-killing regulation” and promising to put coal miners back to work.
Delivering against this promise is proving difficult: US high-cost coal is crowded out not just by increasingly low-cost renewables, but also by shale gas and lower-cost coal from other countries.