New research estimates upstream oil and gas subsidies in Russia and Norway
Fossil Fuels: At What Cost? Government Support for Oil and Gas Upstream Activities in Russia was issued Monday, while Fossil Fuels: At What Cost? Government Support for Oil and Gas Upstream Activities in Norway was issued earlier this month. They are part of a series of reports published by the International Institute for Sustainable Development's Global Subsidies Initiative. The Russia report was initiated and prepared by WWF Russia. The Norway report was prepared by Econ Pöyry.
The Russia report quantifies the value of 17 subsidy schemes totalling US$8.1 billion in 2009 and US$14.4 billion in 2010—4.2 per cent and 6.0 per cent respectively of the total value of oil and gas production in Russia.
The Norwegian government provided US$4 billion in subsidies for upstream oil and gas activities in 2009—roughly 13 per cent of the oil and gas industry's total revenue.
The reports use an internationally agreed definition of subsidy adopted by the World Trade Organization to determine the value of oil and gas production subsidies. This detailed analysis is the first of its kind in Russia and Norway.
In both countries, subsidies are provided to develop new fields in remote areas, including the Arctic.
The reports are intended to improve transparency regarding subsidies provided to the oil and gas industry and foster a public debate on whether they constitute a good use of public funds.
In recent years, governments around the world have pledged to reform their fossil fuel subsidies as a means to reduce greenhouse gas emissions and to preserve public finances.
In 2009, G20 and Asia-Pacific Economic Cooperation countries, including Russia, undertook to rationalize and phase out inefficient fossil fuel subsidies that encourage wasteful consumption over the medium-term. While not a member of the G20 or APEC, Norway supports the commitment and is a member of the Friends of Fossil Fuel Subsidy Reform group of countries.
-end-
For more information about the Russia report, contact author Ivetta Gerasimchuk at +7 916 487 4382 or igerasimchuk@iisd.org. For more about the Norway report, contact Kerryn Lang at +41 22 917-8920 or klang@iisd.org, or Damon Vis-Dunbar at +41 22 917 8848 or dvis-dunbar@iisd.org.
About IISD
The International Institute for Sustainable Development (IISD) is an award-winning independent think tank working to accelerate solutions for a stable climate, sustainable resource management, and fair economies. Our work inspires better decisions and sparks meaningful action to help people and the planet thrive. We shine a light on what can be achieved when governments, businesses, non-profits, and communities come together. IISD’s staff of more than 250 experts come from across the globe and from many disciplines. With offices in Winnipeg, Geneva, Ottawa, and Toronto, our work affects lives in nearly 100 countries.
You might also be interested in
What the G7 Ministerial Could Have Delivered on Fossil Fuel Subsidies Reform
The G7 climate, energy, and environment ministers’ meeting in Turin fell short when it came to breaking the 15 years of gridlock on fossil fuel subsidies. Here are three ways the G7 can use their next meetings to demonstrate measurable progress.
Adaptation is the world's unheralded tool to deal with climate change
Reducing greenhouse gas emissions is a cut-and-dry way to stop climate change. But how the world responds to the impacts already taking place is a whole other can of worms—a large can, and one that can seem incomprehensible.
Could CSDDD Signal A Tipping Point For Corporate Accountability?
This week has seen the EU agree new rules on supply chain due diligence, one of a set of laws passed including action on toxic air, packaging and packaging waste. What the Corporate Sustainability Due Diligence Directive establishes is legal liability for corporates on environmental and human rights issues in the European courts—and that could change the framework of corporate accountability.
Why does the EU want to quit the Energy Charter Treaty?
European lawmakers have backed plans for the EU to exit a treaty that lets fossil fuel firms sue when climate policies hit profits.