Energy Subsidies in Other Countries

If we aim to reduce global emissions in order to limit global warming to less than 2°C above pre-industrial levels, then the energy sector is of paramount importance. Many countries and regions are making this switch: from subsidising fossil fuels and towards investing in sustainable energy. This report describes how Ethiopia, Morocco, Peru and the Philippines have reformed their subsidies. It also describes how countries including Denmark, Finland, Norway and Sweden have introduced innovative policy instruments to encourage switching towards  renewable and sustainable energy.

This briefing note sets out some basic information about international experiences with “dual pricing”: selling the same fuel product at two different prices to different types of consumers. It begins with a broad overview of information from international literature and then presents several detailed case studies.

On Tuesday, 24 May 2016, the event “Financing Adaptation and Resilience Through Fossil Fuel Subsidy Reform and Fuel Duty” took place in Bonn, Germany.

This study examines the role that policy crediting might play in increasing the mitigation impact of energy pricing reform and carbon pricing policies (pricing reform).

This study reviews deployment subsidies for onshore wind in two countries, Germany and China. 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.

Subsidies for the consumption of fossil fuels were estimated at US$550 billion in 2013, according to the International Energy Agency. This report by IISD and the Nordic Council of Ministers modeled the impact of removing fossil fuel subsidies in 20 countries between 2015 and 2020. The results show that this alone would reduce national emissions, against business as usual, by an average of 11 per cent. By taking 30 per cent of subsidy savings, and investing in renewable energy and energy efficiency, national emissions are reduced further to an average of 18 per cent by 2020. The report also includes case studies of reform in the Philippines, Morocco and Jordan.

Jointly prepared by IISD, OCI and ODI, this country study and accompanying data sheet compiles publicly available information on fossil fuel production subsidies in Russia in 2013 and 2014. It is a background paper to the report Empty promises: G20 subsidies to oil, gas and coal production and provides a baseline to track progress on the phase-out of such subsidies as part of a wider global energy transition.

In January 2015, Suhail Al Mazroui, the Minister of Energy in the United Arab Emirates (UAE), announced that lifting energy subsidies was 'just a matter of time'. Six months on, that time appears to have come. On 22 July, the United Arab Emirates (UAE) government announced that the prices of gasoline and diesel will be deregulated from 1 August.