Consumer Fossil Fuel Subsidies

As the fossil fuel subsidies are expected to swell following the rapidly rising energy prices, IISD offers a background note on the rationale and international initiatives for the reform of fossil fuel subsidies.

Geneva, December 10—In the lead-up to the 5th anniversary of the Paris Agreement, ten governments are calling on world leaders to turn their high-level commitments into urgent action and phase out inefficient fossil fuel subsidies.

This study tracks, for the first time, each G20 country's progress on ending support for fossil fuels—ranking their transparency, commitments, and financial support to oil, gas, and coal.

The report examines practical options for subsidy targeting in India by using a survey of over 900 households to analyze the distribution of residential electricity subsidies in the state of Jharkhand. It also examines various strategies to improve subsidy distribution and to better target benefits to poor households.

Electrictity subsidy reforms in India could free up INR 306 crore while making the system more equitable, researchers say.

We have an opportunity to reform harmful fossil fuel subsidies as part of a green recovery after COVID-19. Our experts explain how.