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Learning from Leaders: Nordic and International Best Practice with Fossil Fuel Subsidy Reform

If we aim to reduce global emissions in order to limit global warming to less than 2°C above pre-industrial levels, then the energy sector is of paramount importance.

A critical change will be national fuel switching away from carbon-intensive sources and increased effort towards energy efficiency and sustainable energy. Subsidies and support from governments to fossil fuels encourage the opposite.

Many countries and regions are making this switch: from subsidising fossil fuels and towards investing in sustainable energy.This report describes how Ethiopia, Morocco, Peru and the Philippines have reformed their subsidies. It also describes how countries including Denmark, Finland, Norway and Sweden have introduced innovative policy instruments to encourage switching towards  renewable and sustainable energy.

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