Renewable Energy Subsidies & Fossil Fuel Phase-Out

This study reviews deployment subsidies for biomass power in two European countries, Germany and the United Kingdom. Its primary goal is to better inform debates about cost-effectiveness by exploring the methods required to assess cost-effectiveness and by estimating the general magnitude and range of benefits in several key areas.

Despite slow but solid progress at the climate change negotiations in Lima, the Conference of Parties this year nonetheless saw promising discussions around national efforts to tackle climate change on-the-ground. This includes increasing calls in the last month to realize opportunities stemming from the removal of US$ 550 billion of subsidies to fossil fuels.

In this paper the Global Subsidies Initiative presents a more complete examination of how fossil-fuel subsidies can impact the deployment of renewable energy. The paper discusses the effect of fossil-fuel subsidies on the cost competiveness of renewables, the incumbent advantage of fossil-fuel-powered generators and the distortion of investment decisions.

‘100% renewables by 2050’ was the driving theme of the Academy REN21 held in Bonn 10-12 November 2014 to celebrate its 10 years driving networks to promote the deployment of renewable energy. Speakers—including Germany’s Federal Ministry for Economic Cooperation and Development (BMZ) and Christine Lins, Executive Secretary of REN21—noted how the amount of renewables now deployed to generate electricity was far in excess of projections made in 2004 when REN21 was set up.  A straw poll of the 180 delegates showed a clear majority who believed that 100% Renewables by 2050 was achievable. This is now the focus of a number of campaigns, for example the “Go 100% Renewables Campaign”. Speakers remarked how quickly this concept and target had moved into the mainstream.

Rome—13-14 October—The Desertec Industial Initiative (Dii) held the 5th Dii Desert Energy Conference on October 13-14 in Rome, Italy.

A new report from the IISD Global Subsidies Initiative was launched in conjunction with the Asia Europe Foundation, at a conference exploring the financing of future Sustainable Development Goals (29-30 September 2014).

The Chinese government has responded to the challenge of increasing energy consumption and environmental pollution with ambitious targets for renewable energy generation; 15 per cent of primary energy is to be generated from renewable sources by 2015. This report discusses the trends in renewable energy investment, the role of public finance in the renewable energy industry, the impact of renewable energy subsidies and the international experience of raising revenues from carbon pricing mechanisms to promote renewable energy.

This discussion paper looks at fossil-fuel pricing and subsidies in the political, social and economic context of Gulf Cooperation Council (GCC) countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.