G-20 Timeline

<img style="float: right;" src="https://www.iisd.org/gsi/sites/default/files/02_-APEC-Singapore.gif" alt="" width="400" height="137" />On 14-15 November 2009, the Leaders of the Asia-Pacific Economic Cooperation (APEC) forum met in Singapore and declared a commitment to "rationalise and phase out over the medium term fossil-fuel subsidies that encourage wasteful consumption, while recognising the importance of providing those in need with essential energy services."
			No details were given about how or when this commitment would be translated into action. The declaration stated that APEC would "review progress on this at our meeting in 2010."
			Although many APEC economies—Australia, Canada, China, Indonesia, Japan, Mexico, Russia, South Korea and the United States—are also G-20 countries, this decision added a significant number of economies to those already committed to reform: Brunei, Chile, Chinese Taipei, Hong Kong, Malaysia, New Zealand, Papua New Guinea, Peru, the Philippines, Singapore, Thailand and Vietnam. It also provided the international reform movement with additional resources to draw on; unlike the G-20, APEC has a dedicated Secretariat and an Energy Working Group of experts, with networks within many national ministries.
			See: <a href="http://www.apec.org/Meeting-Papers/Leaders-Declarations/2009/2009_aelm.aspx">2009 Leaders' Declaration. Singapore Declaration - Sustaining Growth, Connecting the Region</a>

<img style="float: right;" src="https://www.iisd.org/gsi/sites/default/files/01.-Pittsburgh-summit.gif" alt="" width="350" height="234" />On 24−25 September 2009, the Leaders of the Group of Twenty (G-20) met in Pittsburgh, Pennsylvania, and declared a commitment to "rationalize and phase out over the medium term inefficient fossil fuel subsidies that encourage wasteful consumption" while recognizing "the importance of providing those in need with essential energy services, including through the use of targeted cash transfers and other appropriate mechanisms," on the basis that inefficient fossil-fuel subsidies "encourage wasteful consumption, distort markets, impede investment in clean energy sources and undermine efforts to deal with climate change."
			The statement cited Organisation for Economic Co-operation and Development (OECD) and International Energy Agency (IEA) studies projecting that the elimination of fossil-fuel subsidies by 2020 "would reduce greenhouse gas emissions in 2050 by 10%" and explicitly noted that "[t]his reform will not apply to our support for clean energy, renewables, and technologies that dramatically reduce greenhouse gas emissions." It called on all nations to join it in phasing out such policies worldwide.
			To implement the strategy, the G-20 requested that four international organisations—the IEA, the Organization of Petroleum Exporting Countries (OPEC), the OECD and the World Bank, referred to collectively as the IGO-4—provide the next Summit with an analysis of the scope of energy subsidies and suggestions for the implementation of subsidy reform and asked G-20 Energy and Finance Ministers to report back to the next Summit with implementation strategies and timelines for action.
			The G-20 consists of Argentina, Australia, Brazil, Canada, China, the EU, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom and the United States.
			See: <a href="http://www.pittsburghsummit.gov/mediacenter/129639.htm">Leaders' Statement: The Pittsburgh Summit</a>

During a Global Subsidies Initiative event in Paris, New Zealand's Deputy High Commissioner to Australia, Vangelis Vitalis, announced that New Zealand was in the final stages of drawing together a group of countries to support the G-20's commitment, the "Friends of Fossil-Fuel Subsidy Reform." He stated that the group would be made up of "serious and credible countries that share our interest in a high-ambition and transparent outcome from the G-20 on the reform of fossil-fuel subsidies." At the time of the announcement, Sweden was the only other confirmed member.

See: <a href="http://www.globalsubsidies.org/research/event-gsi-presents-latest-fossil-fuel-subsidy-research-nz-launches-friends-reform-group">GSI presents latest fossil-fuel subsidy research as NZ launches Friends of Reform group</a>

The 15th session of the Conference of Parties (COP-15) to the United Nations Framework Convention on Climate Change did not live up to expectations, failing to produce a legally binding successor to the Kyoto Protocol and resulting in only the Copenhagen Accord, a non-binding agreement of principles drafted by the United States and the BASIC countries (China, India, South Africa and Brazil), which was widely criticised for its lack of ambition.
			Amidst these difficulties, the G-20's agreement to phase out fossil-fuel subsidies was held up as one of the positive ongoing international processes that could offer significant reductions in CO2 emissions. In his plenary speech, United States President Barack Obama argued that America had "worked with other nations to phase out fossil-fuel subsidies" as part of its strategy to meet its climate responsibilities. The significance of the commitment was also discussed in a Global Subsidies Initiative side event to COP-15. Observations included that subsidies come in many different forms, making them difficult to measure, and that the reform of fossil-fuel subsidies offers benefits over and above reductions in GHG emissions, such as freeing up oil for export in oil-producing countries, reducing the need for imports in oil-consuming countries and reducing local pollution.
			See: <a href="http://www.whitehouse.gov/the-press-office/remarks-president-morning-plenary-session-united-nations-climate-change-conference">Press Release - Remarks by the President at the Morning Plenary Session of the United Nations Climate Change Conference</a>

On 14-15 October 2010, the Global Subsidies Initiative and the United Nations Environment Programme (UNEP) convened a two day conference, Increasing the Momentum of Fossil-Fuel Subsidy Reform: Developments and Opportunities, at the World Trade Organisation, in Geneva, Switzerland. It was attended by representatives from APEC, the G-20, the "Friends" group, the OECD, OPEC, UNEP, World Bank, the WTO and a number of other groups in support of reform.
			The agenda focused on five key themes: a review of the latest research on the scale and impacts of fossil-fuel subsidies; a review of international political developments; how to overcome political obstacles to reform; the necessary elements of a reform strategy; and potential opportunities for international collaboration. It included government presentations from Argentina, Indonesia and Mexico, as well as the group "Friends of Fossil-Fuel Subsidy Reform." This latter presentation revealed for the first time the exact membership of the Friends—Denmark, New Zealand, Norway, Sweden and Switzerland—and explained that the group hoped to "undertake advocacy with the G-20 to encourage progress, seek updates and also advise on how the Friends can support the G-20." It was also revealed that the APEC Energy Working Group was preparing a tender for its study on fossil-fuel subsidies in APEC economies.
			The concluding remarks from IISD's Mark Halle summarized that, although a significant body of evidence shows that subsidies are tremendously costly and often fail to meet their stated objectives, "countries' experiences of reform and the challenges involved are sobering." On the other hand, he observed that recognition is growing internationally that subsidies must be addressed, and much can be achieved by countries working together as a group to overcome their national and regional challenges.
			See: <a href="https://www.iisd.org/gsi/sites/default/files/ffs_conference.pdf">GSI-UNEP Conference Report - Increasing the Momentum of Fossil-Fuel Subsidy Reform: Developments and Opportunities</a>
			All of the presentations from the conference are also available <a href="http://www.globalsubsidies.org/research/gsi-unep-conference-increasing-momentum-fossil-fuel-subsidy-reform-developments-and-opportu">here</a> at the GSI's website.

On 9 February, the Friends of Fossil Fuel Subsidy Reform published a written statement, explaining why it formed and what it aims to achieve, in the GSI's bi-monthly newsletter Subsidy Watch.
			The statement explained that the group of countries—currently Denmark, New Zealand, Norway, Sweden and Switzerland—were "united by a commitment to concerted international action on climate change and coherence in international trade and environmental policy." As stated in the initial announcement about their reform, the group's two objectives remain the encouragement of ambition and transparency in the G-20's reform process. The statement encouraged G-20 countries to continue demonstrating their commitment to reform in future Leaders' Declarations and to share evidence of progress. It also acknowledged the important efforts being made by the IEA and the OECD to "gather information and develop time-series databases on production and consumption subsidies."
			See: Subsidy Watch article <a href="http://www.globalsubsidies.org/subsidy-watch/commentary/friends-fossil-fuel-subsidy-reform-supporting-g-20-and-apec-commitments">The Friends of Fossil Fuel Subsidy Reform: Supporting the G-20 and APEC commitments</a>

<img style="float: right;" src="https://www.iisd.org/gsi/sites/default/files/inline-images/05_-APEC-Fukui---permission.gif" alt="" width="400" height="193" />While recognising the key role that fossil-fuels play in APEC energy markets, the declaration of the 9th Energy Ministerial Meeting in Fukui, Japan, reaffirmed the group's commitment "to rationalize and phase out over the medium term fossil-fuel subsidies that encourage wasteful consumption, while recognizing the importance of providing those in need with essential energy services." According an interview with the Lead Shepherd of APEC's Energy Working Group, Dr. Phyllis Yoshida, a proposal was also put forward to conduct an analytic study on the impacts of phasing out of fossil-fuel subsidies in APEC economies, which was subsequently endorsed.
			See: <a href="http://www.apec.org/Press/News-Releases/2010/0619_energy_security.aspx">APEC Energy Ministers give instructions on energy security and efficiency</a>; and Subsidy Watch interview, <a href="http://www.globalsubsidies.org/subsidy-watch/commentary/apec-speaks-how-asia-pacific-economies-plan-address-fossil-fuel-subsidy-ref">APEC Speaks: how Asia-Pacific economies plan to address fossil-fuel subsidy reform</a>

<img style="float: right;" src="https://www.iisd.org/gsi/sites/default/files/06_-G20-Toronto.gif" alt="" width="400" height="268" />In the first Summit since committing to phase out inefficient fossil-fuel subsidies, Energy and Finance Ministers submitted reports to G-20 Leaders on national implementation strategies for reform, and the IGO-4 (the IEA, OPEC, the OECD and the World Bank) submitted an analysis of energy subsidies, as agreed in Pittsburgh. The details of the reports were not immediately made public.
			G-20 countries acknowledged the submissions in paragraph 42 of the Leaders' Declaration, and added: "We also encourage continued and full implementation of country-specific strategies and will continue to review progress towards this commitment at upcoming summits." No formal mechanisms were agreed for the ongoing review of the commitment.
			See: <a href="http://www.canadainternational.gc.ca/g20/summit-sommet/2010/toronto-declaration-toronto.aspx?lang=eng">The G-20 Toronto Summit Declaration</a>

<img style="float: right;" src="https://www.iisd.org/gsi/sites/default/files/inline-images/07_-Annex.gif" alt="" width="350" height="451" />The G-20 published the implementation strategies for reform and the IGO-4 report that were submitted at the Toronto Summit in June 2010, setting a precedent for transparency relating to its fossil-fuel subsidies commitment.
			Of the strategies submitted by Energy and Finance Ministers, it was revealed that 13 countries provided written outlines of plans for implementation. Most included a list of their fossil-fuel subsidies. The remaining seven countries (Australia, Brazil, France, Japan, Saudi Arabia, South Africa and the United Kingdom) reported that they had no inefficient fossil-fuel subsidies. The Report to Leaders also revealed that Energy and Finance Ministers were committed to the reform of subsidies to both consumers and fossil-fuel producers — indeed, "[s]ubsidies for the production of fossil fuels represent the majority of subsidies that G-20 countries have identified as inefficient and proposed for phase-out" — and had benefited from a "regular dialogue" on energy issues.
			The study submitted by the IGO-4, Analysis of the scope of energy subsidies and suggestions for the G-20 initiative: IEA, OPEC, OECD, World Bank joint report, provided an overview of the size and impacts of energy subsidies, and made a number of recommendations on how to reform subsidies, including the importance of first identifying subsidies that are inefficient and wasteful, considering whether it is best to amend subsidy policies or to target the same objectives with alternative policy tools and making credible commitments to compensate vulnerable groups.
			See:
			<ul>
				<li><a href="http://www.g20.org/Documents2010/expert/Report%20to%20Leaders_G20_Inefficuent%20_Fossil_Fuel_Subsidies.pdf">Report to leaders on the G20 commitment to rationalize and phase out inefficient fossil fuel subsidies</a></li>
				<li><a href="http://www.g20.org/Documents2010/expert/Annexes_of_Report_to_Leaders_G20_Inefficient_Fossil_Fuel_Subsidies.pdf">ANNEX — Implementation strategies and timetables</a></li>
				<li><a href="http://www.g20.org/Documents2010/expert/G20_Energy_Subsidy_Joint_Report.pdf">Analysis of the scope of energy subsidies and suggestions for the G-20 initiative. IEA, OPEC, OECD, World Bank joint report</a></li>
			</ul>

<img style="float: right;" src="https://www.iisd.org/gsi/sites/default/files/inline-images/08_-OPEC.gif" alt="" width="300" height="83" />The OPEC Secretariat published the first official statement outlining its views on energy subsidies, in the Global Subsidies Initiative's bi-monthly newsletter Subsidy Watch.
			The statement emphasized a number of key points, including: that phasing out subsidies should be a sovereign decision; that a "complete picture" is needed when considering subsidy reform, including analysis of subsidies to renewable energy; and that the over-riding priority of developing countries is to enhance their economic and social development, with their environmental obligations taking into account the principles of equity, common but differentiated responsibilities and respective capabilities.
			See Subsidy Watch article <a href="http://www.globalsubsidies.org/subsidy-watch/commentary/energy-subsidies-context-sustainable-development">Energy subsidies in the context of sustainable development</a>

<img style="float: right;" src="https://www.iisd.org/gsi/sites/default/files/inline-images/09_-Earth-Track-study.gif" alt="" width="300" height="262" />On 8 November 2010, non-governmental organisations Earth Track and Oil Change International published the report G-20 Fossil-Fuel Subsidy Phase Out: A review of current gaps and needed changes to achieve success. It found that no country had initiated a reform program specifically in response to the G-20 commitment; that the G-20's reporting of subsidies was "spotty," with some countries failing to report tens of billions of subsidies that had been identified in other assessments, and that where arguments had been put forward to justify the retention of various subsidies that had been identified, these were often weak. The report recommended separating reporting from reform; establishing an oversight and review board for reporting; standardizing the process of submitting subsidy information; establishing a technical committee of independent experts to discuss and resolve reporting issues; and initiating discussion and research on the creation of a secretariat to oversee reform efforts.
			Two days later, on 10 November 2010, the University of Toronto's G-20 Research Group and the University Higher School of Economic's G-8 Research Centre released a second, independent study, the 2010 G-20 Toronto Summit final compliance report, which included an analysis of the G-20's progress in implementing its fossil-fuel subsidies commitment. The report concluded that 11 members (Australia, Brazil, France, Germany, Italy, Japan, Korea, Mexico, South Africa, Saudi Arabia and the United Kingdom) were in full compliance; seven members (Argentina, Canada, China, Indonesia, Russia, Turkey and the United States) had made some progress towards meeting their commitment; and that two members (India and the EU) had failed to comply. This was on the basis that India had failed to submit an implementation plan for reform and that the EU was considering an extension of the deadline for coal subsidies, whereas all other countries had submitted implementation plans or announced that they had no subsidies. No attempt was made to verify the accuracy of country submissions. It was not recognised that India had in fact fully liberalized gasoline prices in June 2010 and that Germany was the principal EU country pushing for an extension of EU coal subsidies.
			See:
			<ul>
				<li><a href="http://www.earthtrack.net/files/uploaded_files/OCI.ET_.G20FF.FINAL_.pdf">G-20 Fossil-Fuel Subsidy Phase Out: A review of current gaps and needed changes to achieve success</a></li>
				<li><a href="http://www.g20.utoronto.ca/analysis/2010toronto-101114.pdf">2010 G-20 Toronto Summit final compliance report</a></li>
			</ul>

<img style="float: right;" src="https://www.iisd.org/gsi/sites/default/files/inline-images/10_-G20-Seoul.gif" alt="" width="400" height="254" />Three weeks prior to the Seoul Summit, the G-20 requested a second report from the IGO-4 (the IEA, OPEC, the OECD and the World Bank) with updated data on fossil-fuel subsidies from the International Energy Agency's World Energy Outlook 2010. This was submitted to the G-20 and made public shortly thereafter, although OPEC did not contribute because of the short notice.
			In the Leaders' Declaration at the end of the Summit, the G-20 countries pledged to continue their work to "rationalize and phase out over the medium term inefficient fossil-fuel subsidies" and asked Finance and Energy Ministers to "report back on the progress made in implementing country-specific strategies and in achieving the goals to which we agreed in Pittsburgh." Countries also asked the IGO-4 to "further assess and review the progress made in implementing the Pittsburgh and Toronto commitments and report back to the Summit in France."
			See:
			<ul>
				<li><a href="http://www.g20.org/Documents2010/11/seoulsummit_declaration.pdf">The G-20 Seoul Summit Leaders' Declaration</a></li>
				<li><a href="http://www.iea.org/weo/docs/second_joint_report.pdf">The Scope of Fossil-Fuel Subsidies in 2009 and a Roadmap for Phasing Out Fossil-Fuel Subsidies. An IEA, OECD and World Bank joint report</a></li>
			</ul>

At the 16th Conference of Parties (COP-16) to the United Nations Framework Convention on Climate Change in Cancun, Mexico, Tim Groser, the New Zealand Minister Responsible for International Climate Change Negotiations, convened an informal meeting of Ministers of small and medium-sized countries that support the reform of inefficient fossil fuel subsidies.
			According to a summary of the event on the website of the New Zealand government, the group explained that it intended to reinforce "early signs of a political commitment in this direction" and was likely to be known as the "Friends of Fossil Fuel Subsidy Reform." The group's members were not announced.
			"Reform of huge subsidies for fossil fuels deserves to be far higher up both the climate change and general economic reform agendas," said Mr Groser, citing OECD projections that it could reduce global GHG emissions up to 10 per cent by 2050.
			See: <a href="http://www.beehive.govt.nz/release/new-zealand-coordinates-action-fossil-fuel-subsidy-reform">New Zealand Coordinates Action on Fossil Fuel Subsidy Reform</a>

Among submissions to the UNFCCC's Ad Hoc Working Group on Long-term Cooperative Action under the Convention (AWG-LCA), countries Norway and New Zealand recommended that the climate change regime's Measuring, Reporting and Verification (MRV) guidelines should encourage the disclosure of information on the reform of fossil-fuel subsidies.
			According to Norway, countries should report on "action that might not have mitigation as primary objective but still have mitigation benefits", citing fossil-fuel subsidy reform as an example. Similarly, New Zealand emphasized the importance of actions "taken primarily under other international commitments, but which also have valuable mitigation benefits", such as fossil-fuel subsidy reform.
			Although these were only recommendations, this marks one of the first attempts to more formally recognise the potential carbon savings of fossil-fuel subsidy reform within international efforts to mitigate climate change.
			See: <a href="http://unfccc.int/resource/docs/2011/awglca14/eng/misc06.pdf">Submissions from Parties to the AWG-LCA </a>

The B-20 - a Business Summit invited to meet in Seoul at the same time as the G-20 Leaders' Summit, comprising 120 global CEOs from major industries and the largest companies in "each continent and nation" - added their voices to groups calling for more action on the commitment to reform fossil-fuel subsidies. The summary of findings and recommendations from participants concluded that "these subsidies should be phased out as soon as possible" and that "faster and broader action is required in light of the clear economic and environmental benefits". The group urged G-20 leaders to end all such subsidies within five years, and argued that although equity concerns need to be addressed, countries have already shown it is possible to reform subsidies at the same time as protecting the poor.

See: <a href="http://www.seoulg20businesssummit.org/download/download.asp?fn=G20_Discussion_document_OFFICIAL_final%282%29.pdf&fc=F">Seoul G-20 Business Summit - Findings and Recommendations from Participants</a>

<div style="float:right"><img src="https://www.iisd.org/gsi/sites/default/files/timeline/g20lib_iea_2009_weocover.jpeg" /> Source: IEA</div>Published on the eve of the Copenhagen Climate Change Conference, the main message of this year's World Energy Outlook is one of both caution and optimism. The report emphasizes that climate negotiators have to make hard decisions in Copenhagen in order to avert the worst effects of climate change, but also points to cost-effective solutions that are already within reach.

The Reference Scenario used in the report assumes that global fossil-fuel subsidies will be reduced gradually. Box 2.3, "The implications of phasing out energy subsidies", highlights the benefits of fossil-fuel subsidy reform, stating that "if energy subsidies were phased out gradually between 2013 and 2020, total primary energy demand at the global level would be cut by slightly more than 5% by 2030…. It was found that removing subsidies would also raise per-capita GDP in most countries concerned." The report takes note of fuel subsidy reforms that were implemented in China and India in 2009 and also includes fossil-fuel subsidy reform in its discussion of financing low-carbon growth. Fossil-fuel subsidies feature prominently in the regional analyses and natural gas outlook as well.

See:

<a href="http://www.worldenergyoutlook.org/media/weowebsite/2009/WEO2009.pdf">http://www.worldenergyoutlook.org/media/weowebsite/2009/WEO2009.pdf</a>

<div style="float:right"><img src="https://www.iisd.org/gsi/sites/default/files/timeline/g20lib_iea_2010_weocover.jpeg" /> Source: IEA</div>
			In this year's World Energy Outlook, the IEA recognized the G-20's and APEC's commitments to phase out subsidies as an important step forward, but, using its New Policies Scenario, asserts that these moves combined with the Copenhagen Accord will still not be enough to "transform the global energy system". 
			Part E of the World Energy Outlook 2010 is a special report on energy subsidies, with particular focus on fossil fuels in Chapter 19. Chapter 20 offers country subsidy profiles for Iran, Russia, China, India, and Indonesia. The IEA begins Part E with its definition of energy subsidies and announces that fossil-fuel consumption subsidies equalled approximately US$ 312 billion in 2009. In his statement to the press at the public release of the report, IEA Executive Director Nobuo Tanaka said, "Getting the prices right, by eliminating fossil-fuel subsidies, is the single most effective measure to cut energy demand in countries where they persist, while bringing other immediate economic benefits."

See:
			<a href="http://www.worldenergyoutlook.org/media/weo2010.pdf">http://www.worldenergyoutlook.org/media/weo2010.pdf</a>

<div style="float:right"><img src="https://www.iisd.org/gsi/sites/default/files/timeline/g20lib_iea_2013_logo.png" /> Source: IEA</div>

As part of its World Energy Outlook analyses, the IEA has been collecting and interpreting data on fossil-fuel subsidies since 1999. This year, in the World Energy Outlook 2010, the Agency announced that it has moved its data online as part of international efforts to promote transparency on fossil-fuel subsidies. The database is accessible to the public and will be updated annually. Viewers can find and sort data by country, fuel, and year. For more information, see Box 19.3 of the World Energy Outlook 2010.

See:

<a href="http://www.iea.org/subsidy/index.html">http://www.iea.org/subsidy/index.html</a>
			<a href="http://www.oecd.org/site/tadffss/IEA%20fossil%20fuel%20subsidy%20data.xlsx">http://www.oecd.org/site/tadffss/IEA%20fossil%20fuel%20subsidy%20data.xlsx</a>

<div style="float:right"><img src="https://www.iisd.org/gsi/sites/default/files/timeline/g20lib_iea_2011_weocover.jpeg" /> Source: IEA</div>

This year's edition of the World Energy Outlook repeats the call for faster, deeper policy changes before the world becomes locked into an unsustainable energy system. One of the special topics addressed in Part D of the report is "Developments in energy subsidies" (Chapter 14). The chapter is further broken down by fossil-fuel subsidies and renewable-energy subsidies. Of note is the stark contrast between the two: subsidies for fossil-fuel consumption totalled US$ 409 billion in 2010, while renewable energy subsidies only amounted to US$ 66 billion. Without a change in course, the IEA estimates the cost of fossil-fuel consumption subsidies will be US$ 660 billion in 2020. The report outlines the price-gap methodology used to create these estimates. In addition, it describes the primary challenges to implementing fossil-fuel subsidy reform and gives recent examples of reforms from a range of countries.

See:
		<a href="http://www.worldenergyoutlook.org/publications/weo-2011/">http://www.worldenergyoutlook.org/publications/weo-2011/</a>

<div style="float:right"><img src="https://www.iisd.org/gsi/sites/default/files/timeline/g20lib_oecd_2011_inventorycover.jpeg" /> Source: OECD</div>

At the Seoul Summit in November 2010, G-20 leaders asked the International Energy Agency (IEA), Organization of the Petroleum Exporting Countries (OPEC), Organization for Economic Cooperation and Development (OECD) and the World Bank to "further assess and review the progress made in implementing the Pittsburgh and Toronto commitments and report back to the 2011 summit in France." In their report, these 4 organizations have given a comprehensive overview, including subsidies that G-20 members may or may not consider inefficient and also reporting on countries not in the G-20.

Overall, despite some price reforms, the total value of fossil-fuel consumption subsidies increased by US$ 110 billion from 2009 to 2010, mostly due to rising international fuel prices. Out of the total estimated subsidies of US$ 409 billion, only 8% reached the poorest income quintile. IEA identified 37 economies with fossil-fuel consumption subsidies using the price-gap approach (cost of supply compared to average end-user prices) and found that almost half had implemented reforms or announced related plans since the beginning of 2010. In the 20 developing countries (5 of which are part of the G-20) studied by the World Bank, end-user prices for gasoline more than doubled, and diesel prices tripled. The World Bank found that pass-through of international fuel prices was also significant in the electricity sector, with an average increase of 50%.

In conjunction with the report, the OECD released the first Inventory of Estimated Budgetary Support and Tax Expenditures for Fossil Fuels in 24 OECD countries (10 of which are part of the G-20). Using a broad definition of subsidies, the inventory accounts for over 250 individual mechanisms that support fossil-fuel production or consumption in these countries. These subsidies are estimated at US$ 45-75 billion per year for the years 2005-2010.

Oil Change International and its partners have released Low Hanging Fruit: Fossil Fuel Subsidies, Climate Finance, and Sustainable Development, which outlines updated estimates of fossil-fuel subsidies, putting them at over US$ 775 billion. The report calls on governments to foster greater transparency; to create action plans for phasing out fossil-fuel subsidies; to incorporate the needs of the most vulnerable groups; and to assign an international body to coordinate and support international efforts for fossil-fuel subsidy reform.

The report follows on the heels of a recent review from the same organization, Phasing Out Fossil-Fuel Subsidies in the G-20: A Progress Update, which offers a grim analysis of the G-20's efforts. Noting the lack of a clear definition of "inefficient" subsidies or oversight in reporting, the authors conclude that members have been able to underestimate their subsidies and largely maintain the status quo on their policies.

See: <a href="https://www.iisd.org/gsi/sites/default/files/g20lib_oilchange_2012_phasingoutffs.pdf">g20lib_oilchange_2012_phasingoutffs.pdf</a> <a href="https://www.iisd.org/gsi/sites/default/files/g20lib_oilchange_2012_lowhangingfruit.pdf">g20lib_oilchange_2012_lowhangingfruit.pdf</a>

<div style="float:right"><img src="https://www.iisd.org/gsi/sites/default/files/timeline/g20lib_un_2012_markhalle.jpeg" /> Source: Earth Negotiations Bulletin</div>

IISD's Global Subsidies Initiative, the International Centre for Trade and Sustainable Development, the UN Environment Programme and Greenpeace organized a side-event on 19 June 2012 at the United Nations Conference on Sustainable Development "Rio+20". In opening the event, entitled "Overcoming the barriers to subsidy reform for a greener economy", Mark Halle, Executive Director at IISD-Europe, asked panelists to comment on the North-South divide in subsidy reform priorities, lessons to be shared from reform efforts in different sectors and the role of multilateral cooperation.

In commenting on the North-South divide, Steve Kretzmann, representing Oil Change International, noted that the UNFCCC process may be one forum for bringing countries together, and that the NAMA mechanism in particular could formally create partnerships between developed and developing countries. Helen Mountford of the OECD's Environment Directorate pointed out that multilateral cooperation has already been progressing in the G-20, but would benefit from a common definition of inefficient fossil-fuel subsidies and a peer review process.

See:
			<a href="http://www.iisd.org/gsi/sites/default/files/ffs_sideevent_overcoming.pdf">http://www.iisd.org/gsi/sites/default/files/ffs_sideevent_overcoming.pdf</a>
			<a href="http://www.iisd.org/gsi/sites/default/files/pb_12_rio20.pdf">http://www.iisd.org/gsi/sites/default/files/pb_12_rio20.pdf</a>

<div style="float:right"><img src="https://www.iisd.org/gsi/sites/default/files/timeline/g20lib_iea_2012_weocover.jpeg" /> Source: IEA</div>

In 2011, support for fossil fuels jumped almost 30% to US$ 523 billion. This support is one of many reasons why fossil fuels will remain dominant in the energy system for years to come.
			These and other major energy trends — including declining public confidence in nuclear power, subsidies to renewables and domestic energy supply growth in the US — are the focus
			of the World Energy Outlook 2012, released on 12 November. A special section on Iraq takes a close look at fossil-fuel consumption subsidies there, and the reader will also find succinct updates
			on policy reform in Iran, Indonesia, Nigeria and Sudan. In examining the economic implications of fossil-fuel subsidies, the IEA found that in 2011 "consumers paid only 76% of the reference or
			unsubsidised price, based on international prices" (using a weighted average of the economies studied).

See:
			<a href="http://www.worldenergyoutlook.org/publications/weo-2012/">http://www.worldenergyoutlook.org/publications/weo-2012/</a>

<div style="float:right"><img src="https://www.iisd.org/gsi/sites/default/files/timeline/g20lib_munk_2012_compliance.png" /> Source: Wikimedia Commons</div>

The Munk School of Global Affairs at the University of Toronto has been tracking G-20 commitments on fossil-fuel subsidies with their Final Compliance Reports following each G-20 summit. According to their scale of -1, 0, +1 (lack of compliance, work in progress, full compliance, respectively), 10 countries achieved a +1 in the November 2011 compliance report for the 2010 G-20 Seoul commitments. In the June 2012 compliance report for the 2011 G-20 Cannes commitments, that number had increased to 12. China showed the biggest progress, jumping from a -1 to a +1, while Germany, India, Korea, and Turkey also improved their scores. Canada and Japan slipped backwards, moving from +1 to 0. The average score of the group overall increased from +.37 to +.63.

The reports are produced by the Munk School's G-20 Research Group, which has recently issued a comprehensive assessment of G-20 progress in 7 key areas, including fossil-fuel subsidies, over the period from when the commitment was first made through October 2012. The report identifies the biggest roadblocks to successful implementation as the lack of a common interpretation of the commitment and the weak reporting mechanism: "Without these components in place the G-20 countries tend to either report no measures subject to phase-out, or report only the measures which have been previously targeted for unrelated reasons, thus contributing to overall poor performance on the commitment."

See:

<a href="https://www.iisd.org/gsi/sites/default/files/g20lib_munk_2012_progressreport.pdf">g20lib_munk_2012_progressreport.pdf</a> 
				<a href="https://www.iisd.org/gsi/sites/default/files/g20lib_munk_2011_compliance.pdf">g20lib_munk_2011_compliance.pdf</a> 
				<a href="https://www.iisd.org/gsi/sites/default/files/g20lib_munk_2011_ccenergycompliance.pdf">g20lib_munk_2011_ccenergycompliance.pdf</a> 
				<a href="https://www.iisd.org/gsi/sites/default/files/g20lib_munk_2010_compliance.pdf">g20lib_munk_2010_compliance.pdf</a>

<div style="float:right"><img src="https://www.iisd.org/gsi/sites/default/files/timeline/g20lib_imf_2013_imfseal.png" /> Source: IMF</div>

In its new report, Energy Subsidy Reform: Lessons and Implications, the IMF clearly demonstrates that reforming energy subsidies is an overall win for the economy, countries' fiscal health, the climate, the environment, efficiency, research and development and equality. While noting there may be adjustment issues in the short-term, the report explains that there are better ways to protect vulnerable parts of the population and still reap the benefits of reform in the long-term. The paper offers a guide to designing a subsidy reform strategy and presents the IMF's estimate of worldwide post-tax energy subsidies: US$ 1.9 trillion (2.5% of global GDP).

See:	<a href="https://www.iisd.org/gsi/sites/default/files/g20lib_io_2013_imfreformlessons.pdf">g20lib_io_2013_imfreformlessons.pdf</a>

<div style="float:right"><img src="https://www.iisd.org/gsi/sites/default/files/timeline/g20lib_un_2013_highlevelpanelpost2015.jpg" /> Photo by Mark Garten</div>

In its newly-released report, A New Global Partnership: Eradicate Poverty and Transform Economies through Sustainable Development, the High Level Panel on the Post-2015 Development Agenda has identified 5 "transformative shifts" that should be driven by the post-2015 goals. To illustrate how work toward these shifts might be broken down into a concrete list of actions, the Panel provided a list of goals, including "Secure Sustainable Energy". The report includes phasing out inefficient fossil-fuel subsidies that encourage wasteful consumption as one of 4 illustrative actions that can help meet that goal.

See:
				<a href="https://www.iisd.org/gsi/sites/default/files/g20lib_un_2013_highlevelpost2015.pdf">g20lib_un_2013_highlevelpost2015.pdf</a> 
				<a href="https://www.iisd.org/gsi/sites/default/files/g20lib_un_2012_resilientpeople.pdf">g20lib_un_2012_resilientpeople.pdf</a>

<div style="float:right"><img src="https://www.iisd.org/gsi/sites/default/files/timeline/g20lib_iea_2013_redrawingecmapcover.jpeg" /> Source: IEA</div>

The International Energy Agency recently released its World Energy Outlook Special Report, Redrawing the Energy-Climate Map, which outlines 4 policies that — if adopted right away — would give the world another chance at 2°C, at no economic cost. The report highlights energy efficiency measures, scaling down the use and proliferation of low-efficiency coal-fired power plants, mitigating methane emissions from upstream oil and gas production, and "accelerating the (partial) phase-out of subsidies to fossil-fuel consumption". According to the IEA, the partial phase-out of fossil-fuel subsidies would reduce CO2 emissions by 360 million tonnes in 2020 by encouraging efficiency and reducing demand for fossil fuels.

See:	<a href="https://www.iisd.org/gsi/sites/default/files/g20lib_io_2013_iearedrawingecmap.pdf">g20lib_io_2013_iearedrawingecmap.pdf</a>

The first meeting of civil society delegates in conjunction with the G-20 process was held in Moscow, Russia on 13-14 June 2013. The G-20 Civil Summit, or "C-20" as the new group has been dubbed, met to discuss how the G-20 can best advance its agenda for "Strong, Sustainable, Balanced and Inclusive Growth". The GSI's Peter Wooders presented civil society's recommendations on the commitment to phase out fossil-fuel subsidies during a panel organized by the C-20 Environmental Sustainability and Energy Working Group. Igor Leshukov, Russian Co-Chair of the G-20's Energy Working Group, responded to the suggestions, noting that the G-20 is implementing a peer review mechanism and organizing outreach events to engage in dialogue with groups already working on fossil-fuel subsidy reform.

See:
		<a href="http://www.iisd.org/gsi/news/g-20-responds-civil-society-recommendations-progressing-fossil-fuel-subsidy-reform-during">http://www.iisd.org/gsi/news/g-20-responds-civil-society-recommendations-progressing-fossil-fuel-subsidy-reform-during</a>

<div style="float:right"><img src="https://www.iisd.org/gsi/sites/default/files/timeline/g20lib_apec_2011_somsanfrancisco.jpeg" /> Courtesy of the APEC Secretariat</div>

The Third APEC Senior Officials Meeting, held in San Francisco, CA, on 23 September 2011, was a workshop on fossil-fuel subsidy reform. The Global Subsidies Initiative's Kerryn Lang presented officials with an overview of fossil-fuel subsidies and strategies for reform, pointing out the importance of transparency and flexibility in the price adjustment mechanism. Ms. Lang also moderated a session on protecting vulnerable populations that may be impacted. Additionally, officials heard from the IEA on the magnitude of subsidies worldwide and the benefits of removing them.

The last session of the day was dedicated to learning about the voluntary reporting mechanism that APEC's Energy Working Group (EWG) is creating. Voluntary reporting is a major component to advancing fossil-fuel subsidy reform in APEC economies, so this session helped senior officials assess progress on fulfilling the Leaders' commitment to rationalize and phase out fossil-fuel subsidies.

See: <a href="https://www.iisd.org/gsi/sites/default/files/g20lib_apec_2011_sompresentations.pdf">g20lib_apec_2011_somdialogueagenda.pdf</a> <a href="https://www.iisd.org/gsi/sites/default/files/g20lib_apec_2011_somdialogueagenda.pdf">g20lib_apec_2011_somdialogueagenda.pdf</a>

<div style="float:right"><img src="https://www.iisd.org/gsi/sites/default/files/timeline/g20lib_apec_2011_leadersummit.jpeg" /> Courtesy of the APEC Secretariat</div>

In the Honolulu Declaration, issued by the APEC Summit held in Hawaii on 8-13 November 2011, leaders reaffirmed their intent to review progress toward fossil-fuel subsidy reform and more clearly stated that they will "set up a voluntary reporting mechanism on progress, which [they] will review annually." The Expert Group on Clean Fossil Energy (EGCFE) has submitted the Voluntary Reporting Mechanism template to the Energy Working Group (EWG), which will be responsible for collecting and compiling APEC economies' reports.

The reporting format asks countries to list current inefficient fossil fuel subsidies and their structure, value, recipients, and purpose. The template also includes sections for reporting policies aimed at expanding energy access, measures taken toward reform, and lessons learned. Details on how inefficient subsidies were identified, the budgetary impacts of reform, other benefits, plans for next year, and designs for monitoring and evaluation are also requested.

See: <a href="https://www.iisd.org/gsi/sites/default/files/g20lib_apec_2012_volreportmechanism.pdf">g20lib_apec_2012_volreportmechanism.pdf</a> <a href="https://www.iisd.org/gsi/sites/default/files/g20lib_apec_2011_honoluludeclaration.pdf">g20lib_apec_2011_honoluludeclaration.pdf</a>

<div style="float:right"><img src="https://www.iisd.org/gsi/sites/default/files/timeline/g20lib_apec_2012_energymins.jpeg" /> Courtesy of the APEC Secretariat</div>

On 24-25 June 2012, the leaders responsible for energy from the APEC member economies gathered in St. Petersburg to discuss strategies for meeting the energy challenges the region faces. In the statement released by the ministers, they not only reaffirmed the commitment made by the Leaders in 2009, but also provided a more detailed affirmation of the benefits of FFSR: "We note…the reduction of subsidies" will encourage more energy efficient consumption, leading to a positive impact on international energy prices and energy security, and will make renewable energy and technologies more competitive." They further instructed the Energy Working Group and member countries to track progress using the Voluntary Reporting Mechanism.

See: <a href="https://www.iisd.org/gsi/sites/default/files/g20lib_apec_2012_energyminstatement.pdf">g20lib_apec_2012_energyminstatement.pdf</a>

<div style="float:right"><img src="https://www.iisd.org/gsi/sites/default/files/timeline/g20lib_apec_2012_leadersummit.jpeg" /> Courtesy of the APEC Secretariat</div>

While this year's final APEC Leaders' Meeting document did not include fossil-fuel subsidies in the primary text, the Leaders did dedicate a one-page annex to "Strengthening APEC Energy Security". After recognizing the need to reduce carbon emissions while sustainably developing, the leaders acknowledge that fossil fuels will still play a large role in their region's economy for years to come. They go on to list a number of measures they will take in order to transition to a low-carbon, energy secure future, repeating the call to rationalize and phase-out inefficient subsidies, adding that they will "continue to build regional capacity" for the reform of those subsidies and report annually on progress using the Voluntary Reporting Mechanism."

See: <a href="https://www.iisd.org/gsi/sites/default/files/g20lib_apec_2012_leadersdeclarationannexb.pdf">g20lib_apec_2012_leadersdeclarationannexb.pdf</a>

<div style="float:right"><img src="https://www.iisd.org/gsi/sites/default/files/timeline/g20lib_apec_2012_ewggsireport.jpeg" /> Courtesy of the APEC Secretariat</div>

The APEC Secretariat commissioned the GSI to prepare a report to help the Energy Working Group implement APEC's commitment to fossil-fuel subsidy reform. The result, Reforming Fossil Fuel Subsidies to Reduce Waste and Limit CO2 Emissions while Protecting the Poor, is an assessment of the existing state of fossil-fuel subsidies in the APEC region, a compilation of useful case studies and an outline of ways to move forward. The case studies cover reform efforts in Australia, Indonesia, Chile, Mexico, Thailand, China and Russia. The guidance presents a framework consisting of research, reform options and implementation, with transparency, communication and consultation embedded from beginning to end.

See: <a href="http://www.iisd.org/gsi/sites/default/files/ffs_apec.pdf ">http://www.iisd.org/gsi/sites/default/files/ffs_apec.pdf </a>

<div style="float:right"><img src="https://www.iisd.org/gsi/sites/default/files/timeline/g20lib_un_2010_cancunbeach.jpeg" /> Source: Keith Pomakis, Wikimedia Commons</div>

On 11 December 2010 the 16th Conference of the Parties to the UN Framework Convention on Climate Change (UNFCCC) wrapped up, with parties taking a number of modest steps to build on the Copenhagen Accord from last year's negotiations. The three chief elements of the Cancun Agreements are the Green Climate Fund, Technology Mechanism, and Adaptation Framework. Fossil-fuel subsidy reform was low on the Parties' agenda, but a meeting was organised by New Zealand for small and medium-sized countries that support fossil-fuel subsidy reform (see timeline event 15 December 2010 under "Friends Group"). Tim Groser, Minister Responsible for International Climate Change Negotiations, convened the meeting. He noted subsequently that the annual US$ 100 billion promised to the Green Climate Fund pales in comparison to the sums foregone each year in favor of subsidizing fossil fuels.

See: <a href="http://www.iisd.ca/vol12/enb12498e.html">http://www.iisd.ca/vol12/enb12498e.html</a> <a href="http://www.iisd.org/gsi/news/fossil-fuel-subsidies-and-un-climate-convention-way-forward-reporting">http://www.iisd.org/gsi/news/fossil-fuel-subsidies-and-un-climate-convention-way-forward-reporting</a>

<div style="float:right"><img src="https://www.iisd.org/gsi/sites/default/files/timeline/g20lib_un_2011_durbantownhall.jpeg" /> Source: Mister-E, Wikimedia Commons</div>

The 17th Conference of the Parties to the UN Framework Convention on Climate Change met in Durban, South Africa from 28 November – 11 December 2011. Several concrete results have breathed life back into the Kyoto Protocol and UN process, including the establishment of a second commitment period under the Kyoto Protocol, launching a new process for creating a legally-binding agreement applicable to all Parties to come into force in 2020 and the operationalization of the Green Climate Fund. Although fossil-fuel subsidy reform did not feature high on the agenda, the Friends of Fossil-Fuel Subsidy Reform hosted a side-event, highlighting the issue for delegates and observers alike (See timeline event 7 December 2011 under "Friends Group").

See: <a href="http://www.iisd.ca/vol12/enb12534e.html">http://www.iisd.ca/vol12/enb12534e.html</a>

<div style="float:right"><img src="https://www.iisd.org/gsi/sites/default/files/timeline/g20lib_un_2012_dohawithmarina.jpeg" /> Source: Betsy Weiner, Wikimedia Commons</div>

The climate change negotiations taking place in Doha, Qatar over the last two weeks have resulted in a set of decisions known as the "Doha Climate Gateway". These included, inter alia, amendments to the Kyoto Protocol to establish its second commitment period and the termination of the work of a couple ad hoc working groups (AWGs)—AWG-KP (for the Kyoto Protocol) and AWG-LCA (for Long-term Cooperative Action).

During the plenary session of the ADP (Ad Hoc Working Group on the Durban Platform for Enhanced Action), Nauru on behalf of AOSIS (Alliance of Small Island States) put forward a draft text, detailing a work plan for 2013 on enhancing pre-2020 ambition. The proposal suggested a series of workshops on a variety of topics be held throughout the year. In the discussion that ensued, some Parties put forward additional themes for the workshops, including fossil-fuel subsidies. Fossil-fuel subsidy reform was otherwise mostly absent from official negotiations, but the Friends of Fossil-Fuel Subsidy Reform did organize another successful side-event on the issue (See timeline event 4 December 2012 under "Friends Group").

See: <a href="http://www.iisd.ca/vol12/enb12567e.html">http://www.iisd.ca/vol12/enb12567e.html</a>

<div style="float:right"><img src="https://www.iisd.org/gsi/sites/default/files/timeline/g20lib_unfcc_2013_dohalogo.jpg" /> Source: Wikimedia Commons</div>

The technical paper Compilation of information on mitigation benefits of actions, initiatives and options to enhance mitigation ambition, produced by the UNFCCC Secretariat based on Parties' submissions, lists fossil-fuel subsidy reform as one of eight thematic areas with mitigation benefits that can increase pre-2020 ambition. In their submissions, 21 countries, the EU, and Nepal, on behalf of LDCs, identified the phasing out of fossil-fuel subsidies as an option for enhanced mitigation ambition. The countries acknowledged the wide-ranging benefits of reform, from the diffusion of new technologies to the correction of market distortions.

See: <a href="https://www.iisd.org/gsi/sites/default/files/g20lib_un_2013_technicalpaper.pdf">g20lib_un_2013_technicalpaper.pdf</a>

As a side-event at the UNFCCC's 17th Conference of the Parties, the GSI and the Friends of Fossil-Fuel Subsidy Reform convened a high-level discussion The Missing Piece? Fossil-Fuel Subsidy Reform and Climate Change.
		The event brought together responsible ministers and other high-level government representatives from Costa Rica, Denmark, Ethiopia, New Zealand, Norway, Sweden and Switzerland, as well as energy subsidy experts from all over the world. The discussion focused on the current state of global efforts to reform fossil-fuel subsidies and possible pathways going forward, including opportunities for integrating reform with national and international climate-change policies.

See: <a href="http://www.iisd.org/gsi/sites/default/files/ffs_sideevent_following.pdf">http://www.iisd.org/gsi/sites/default/files/ffs_sideevent_following.pdf</a>

<div style="float:right"><img src="https://www.iisd.org/gsi/sites/default/files/timeline/g20lib_un_2012_ianparry.jpeg" /> Source: Earth Negotiations Bulletin</div>

On 26-27 March in New York City, delegates convened the intersessional meeting of the UN Conference on Sustainable Development to discuss the zero draft of the future Rio+20 document. On the sidelines, the Friends of Fossil-Fuel Subsidy Reform were busy spreading the word on how fossil-fuel subsidy reform can contribute to sustainable development. The side-event, entitled "Fossil-Fuel Subsidy Reform: Building momentum at Rio and beyond", was introduced by New Zealand's UN Permanent Representative Jim McLay and featured speakers from the GSI and IMF, alongside ambassadors from Ethiopia, Costa Rica, and Sweden. Christopher Beaton (GSI) and Ian Parry (IMF) both stressed the need to account for negative social effects when planning for reform, while the ambassadors shared their own countries' experiences with reform.

See: <a href="http://www.iisd.org/gsi/sites/default/files/ffs_sideevent_rio_beyond_meetingreport.pdf">http://www.iisd.org/gsi/sites/default/files/ffs_sideevent_rio_beyond_meetingreport.pdf</a>

<div style="float:right"><img src="https://www.iisd.org/gsi/sites/default/files/timeline/g20lib_un_2012_rio20sideeventjune21.jpeg" /> Source: Earth Negotiations Bulletin</div>

Recognizing that many governments want to reform fossil-fuel subsidies but face powerful political opposition, the Friends of Fossil-Fuel Subsidy Reform and the GSI organized a Rio+20 side-event focused on overcoming those barriers. Among the key suggestions were formulating a clear communications strategy, phasing in reform gradually, complementing reform with other social programs and increasing transparency. Several panelists also mentioned fighting corruption, improving efficiency and encouraging alternative transit systems as ways to loosen the hold special interests may have on policy-makers.

See: <a href="https://www.iisd.org/gsi/sites/default/files/g20lib_friends_2012_riosideeventjune21.pdf">g20lib_friends_2012_riosideeventjune21.pdf</a>

<div style="float:right"><img src="https://www.iisd.org/gsi/sites/default/files/timeline/g20lib_friends_2012_cop18sideevent.jpeg" /> Source: Earth Negotiations Bulletin</div>

The Friends of Fossil-Fuel Subsidy Reform organized a side event at the climate negotiations in Doha in order to provide participants with concrete examples of how reform can best be implemented. The Danish Minister of Climate, Energy, and Buildings, Martin Lidegaard, co-chairing the event with New Zealand's Minister of Trade and Climate Change, Tim Moser, outlined the 3 steps to progressing reform: (1) engagement of key political players, (2) innovative regulatory models designed to address the needs of vulnerable groups and (3) engagement of civil society in the reform process. The GSI's Kerryn Lang introduced IISD's new guidebook on (1) getting energy prices right, (2) managing the impacts of policy reform and (3) building support for reform.

See: <a href="http://www.iisd.org/gsi/sites/default/files/ffs_sideevent_bestpractice.pdf">http://www.iisd.org/gsi/sites/default/files/ffs_sideevent_bestpractice.pdf</a>

On 18 April 2013, the Friends of Fossil-Fuel Subsidy Reform group organized a 3-hour event in Washington DC for representatives of G-20 states to discuss progress made toward reforms and options for the fossil-fuel subsidy reform peer review process. Held in the White House Conference Center, the event was opened by Swiss Ambassador Giancarlo Kessler. During the first session, White House representative Mary Beth Goodman explained that while fossil-fuel subsidy reform is politically challenging in the US right now, it remains a priority for U.S. President Obama. Goodman expressed hope that the reforms would eventually be part of a larger tax reform package. The IMF's Ben Clements and World Bank's Marianne Fay and Stacy Swann also presented, the former discussing the IMF's new report Energy Subsidy Reform: Lessons and Implications, and the latter giving an overview of the Bank's new initiative on fossil-fuel subsidies.

The second session offered participants an overview of existing peer review processes already being implemented within the OECD and APEC, which might offer examples to follow as the G-20 creates its fossil-fuel subsidy reform peer review mechanism. The GSI presented its recommendations for the process, and the United States' Departments of Energy and Treasury gave an update on discussions within the G-20's Energy and Sustainability Working Group (ESWG), as well as the methodology paper that the US is preparing for the G-20.

See: <a href="https://www.iisd.org/gsi/sites/default/files/g20lib_friends_2013_peerrvwroundtable.pdf">g20lib_friends_2013_peerrvwroundtable.pdf</a>

<div><img style="padding-left: 0;" src="https://www.iisd.org/gsi/sites/default/files/timeline/g20lib_g20_2011_cannes.jpeg" /> Source: Presidency of the Nation of Argentina (Wikimedia Commons)</div>

On 3-4 November 2011, G-20 countries met for the fourth time since first committing to reform fossil-fuel subsidies. No further action on fossil-fuel subsidy reform was instigated. The Final Communiqué simply stated that, "We reaffirm our commitment to rationalise and phase-out over the medium term inefficient fossil fuel subsidies that encourage wasteful consumption, while providing targeted support for the poorest." In a press conference following the Summit, United States President Barack Obama described the commitment as "the single-most important step we can take in the near term to fight climate change and create clean-energy economies".

The Summit also saw the French Presidency establish the "B-20", a panel of business leaders from all G-20 countries. Made up of around 200 heads of small, medium and large corporations around the world, the B-20 developed in depth recommendations from the business community on key G-20 issues. The group fully endorsed the commitment to phase out inefficient fossil-fuel subsidies but said that "faster and broader action" was needed. It called upon G-20 leaders to: provide a thorough report on all such subsidies by the next G-20 Summit in Mexico; to commit to a timeframe for reform, ideally within the next five years; and to review the costs and effectiveness of different policies to tackle energy poverty.

See:
			
				<a href="http://www.g20.utoronto.ca/2011/2011-cannes-communique-111104-en.html">http://www.g20.utoronto.ca/2011/2011-cannes-communique-111104-en.html</a> 
				<a href="http://www.b20.fr/uploads/presse/Final-Report-with-with-appendices-B20-2011.pdf">http://www.b20.fr/uploads/presse/Final-Report-with-with-appendices-B20-2011.pdf</a> 
				<a href="http://www.whitehouse.gov/the-press-office/2011/11/04/press-conference-president-obama-after-g20-summit">http://www.whitehouse.gov/the-press-office/2011/11/04/press-conference-president-obama-after-g20-summit</a>

<div><img style="padding-left: 0;" src="https://www.iisd.org/gsi/sites/default/files/timeline/g20lib_g20_2012_grouppicloscabos.jpeg" /> Source: Gobierno de Chile (Wikimedia Commons)</div>

The issue of fossil-fuel subsidy reform came up at various G-20 meetings held in Mexico this year, including the briefing on green growth (a Mexican priority for the summit), the President's conversation with the Youth 20 and the meeting of the Working Group on Energy and Commodity Markets. In preparation for the meeting, 10 countries and the EU submitted reports on progress toward reform and newly planned actions since 2011; 5 countries reported that they do not have any inefficient fossil fuel subsidies; and the remaining 5 reported no measures that fall within the scope of the commitment, but commented on related policies that are being implemented.

In the final declaration resulting from Mexico's Presidency of the G-20, leaders added to the previous language on the elimination of inefficient fossil-fuel subsidies that they acknowledge "the relevance of accountability and transparency, [and ask Finance Ministers] to explore options for a voluntary peer review process for G-20 members by their next meeting". The declaration also stated that they "welcome a dialogue on fossil fuel subsidies with other groups already engaged in this work."

See:

<a href="https://www.iisd.org/gsi/sites/default/files/g20lib_g20_2012_loscabos.pdf">g20lib_g20_2012_loscabos.pdf</a>
			<a href="https://www.iisd.org/gsi/sites/default/files/g20lib_g20_2012_commitments.pdf">g20lib_g20_2012_commitments.pdf</a>
			<a href="https://www.iisd.org/gsi/sites/default/files/g20lib_g20_2012_countryprogressreports.pdf">g20lib_g20_2012_countryprogressreports.pdf</a>
			<a href="https://www.iisd.org/gsi/sites/default/files/g20lib_g20_2012_summaryprogress.pdf">g20lib_g20_2012_summaryprogress.pdf</a>