At last year's United Nations Climate Change Conference (COP 28), a new coalition of 13 countries chaired by the Netherlands was formed to phase out fossil fuel subsidies. This coalition is exploring how to effectively address sectors that have broad exemptions on fossil fuel taxation—including aviation and shipping. According to a 2022 review, these sectors make up almost half of fossil fuel subsidies in the Netherlands.

Together, aviation and shipping represent 6% of global transport emissions, and both sectors are rapidly growing. Their reform presents particular challenges. The majority of both aviation and shipping are primarily international, requiring engagement with international treaties and governance mechanisms. They are also both highly competitive sectors, raising concerns about the displacement of industry to jurisdictions with lower standards.

Fossil fuel subsidy reform aims to create an even playing field for sectors with lower emissions and encourage a more rapid transition to sustainable fuels. This public online forum, including member states from the coalition and international experts, will examine the opportunities and challenges to fossil fuel subsidy reform in the shipping and aviation sectors.

Agenda

Welcome and Introduction

Dutch Ministry of Climate Policy and Green Growth

Fossil Fuel Subsidy Reform Complexity, Urgency, and Multilateral Agenda Setting

Dr. Ivetta Gerasimchuk, Director, Energy Program, International Strategy, IISD

Fossil Fuel Subsidy Reform in the Aviation Sector

Giovanni Sgaravatti, Energy and Climate Research Analyst, Bruegel

Fossil Fuel Subsidy Reform in the Shipping Sector

Dr. Tristan Smith, Associate Professor, University College London

Q&A

Concluding Remarks