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 [email protected]. For more about the Norway report, contact Kerryn Lang at +41 22 917-8920 or [email protected], or Damon Vis-Dunbar at +41 22 917 8848 or [email protected].
About IISD
The International Institute for Sustainable Development (IISD) is a globally recognized think tank with 3 decades of experience working to solve the world’s most pressing sustainable development challenges. We combine deep expertise in a wide range of issues with a collaborative approach to research, policy advice, and hands-on support to ensure these solutions are brought to life. Headquartered in Winnipeg, Manitoba, we are a diverse team of over 300 professionals working from offices in Canada, Switzerland, and other locations around the world.
You might also be interested in
Strait of Hormuz Closure: Implications for African trade resilience
David Beer explores how the crisis in the Middle East is impacting African supply chains, while considering how the continent could turn this disruption into lasting gains for regional trade.
How the Hormuz Blockade Hit Asia
William George and Lynn Hughes assess how China, Japan, and Vietnam are navigating the fallout of the Strait of Hormuz closure and what it reveals about the state of energy security across Asia.
What the Hormuz Crisis Teaches Us About Agriculture’s Strategic Vulnerability
Darcie Doan explains how the Strait of Hormuz closure has exposed vulnerabilities at the heart of global food systems and why the crisis may be a turning point for smarter nitrogen use and long-term resilience.
The Tyranny of the Landlocked
Yana Popkostova outlines how disruptions in the Strait of Hormuz highlight the need for Central Asia and Europe to build resilience through connectivity, infrastructure, and trusted partnerships.