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The G-20 Summit in St. Petersburg on 5-6 September placed job creation and economic growth at the centre of the debate. The leaders’ declaration at the end of the summit emphasized the need for more transparency and accountability in the search for sound and sustainable economic growth. In this realm the G-20 leaders also reaffirmed their commitment made in 2009 at the Pittsburgh Summit "to rationalize and phase out inefficient fossil fuel subsidies that encourage wasteful consumption" and called for the "development of a methodology for a voluntary peer review process and the initiation of country-owned peer reviews" (G-20 - St. Petersburg Summit, 2013).

In February 2013, recommendations were made by the Civil-20 Working Group on Environmental Sustainability and Energy to the G-20 to foster dialogue on developing a methodology for voluntary peer review processes as a means to increase transparency on fossil-fuel subsidies. Moreover, a call was made to develop and use a common definition of a fossil-fuel subsidy.

In light of the debate on a voluntary peer review process within the G-20, the GSI has mapped the options for feasible, near-term peer review within the G-20. The GSI believes there would be significant benefits for fossil fuel subsidy reform from voluntary peer review processes:

  • Increased transparency and accountability of the G-20 countries with respect to their commitments;
     
  • Understanding where a country's fossil-fuel policies are with respect to those of other countries, while rethinking their context and providing different perspectives on fossil-fuel subsidies;
     
  • Comparing and contrasting the effectiveness of policy approaches for fossil-fuel subsidy reform over time;
     
  • Receiving expert advice for the country's action plan, including advice and shared experience on politically sensitive issues;
     
  • Sharing reform experiences and policy tools among the G-20 members;
     
  • Getting credit for positive examples where the country is showing leadership and good practice.

While we cannot lose sight of the other international fora where progress on fossil-fuel subsidy reform can be made, the confirmation of the commitment of the G-20 leaders is important and, although small, a step in the right direction. It is now crucial to develop and implement a structured peer review process for which data collection and subsequently transparency of fossil-fuel subsidies is one of the principal challenges. The GSI recommends the use of a template to provide information on fossil fuels and their reform within a common structure. The G-20 countries already have the option to use a very basic reporting format based on three questions. Elaborating this further would allow for a better peer reviewing process.