Financing the Sustainable Development Goals Through Fossil-fuel Subsidy Reform: Opportunities in Southeast Asia, India and China
This report from the Global Subsidies Initiative of IISD was launched in conjunction with the Asia Europe Foundation, at a conference exploring the financing of future Sustainable Development Goals (September 29–30, 2014).
The report finds that fossil-fuel subsidy removal and the subsequent taxation of fossil fuels via carbon taxes and VAT could provide significant fiscal resources to Asian governments in order to support the implementation of Sustainable Development Goals (SDGs) via a “Means of Implementation.” The report estimates that in Emerging and Developing Asia fossil-fuel subsidies account for US$104 billion annually, or close to the OECD’s total aid to the developing world. The report analyzes three areas: the potential savings from fossil-fuel subsidies to fund other more productive and targeted government spending, the impact from the persistence of fossil-fuel subsidies on wider proposed Sustainable Development Goals and case studies from the Philippines and Indonesia where governments have reformed fossil-fuel subsidies and been able to channel part of the savings towards social spending and investment in infrastructure. The reports includes a framework for revealing the links between fossil-fuel subsidies, their reform and opportunities for the financing and delivery of the SDGs. It is released as a working paper produced from the GSI with support from the Asia Europe Foundation and core funders. Comments to the author on the paper are welcomed.
You might also be interested in
Mapping India's Energy Subsidies 2020: Fossil fuels, renewables and electric vehicles
How have India’s energy subsidy policies changed? What have been the most significant developments in India’s dynamic energy policy environment? And is public support aligned with India’s desired energy future?
Beyond Fossil Fuels: Fiscal transition in BRICS
This report makes the case for preparing government budgets for the clean energy transition in BRICS (Brazil, Russia, India, China, South Africa).
Mapping Policy for Solar Irrigation Across the Water-Energy-Food (WEF) Nexus in India
How are India's off-grid solar pump policies affecting the water–energy–food nexus? This paper maps out impacts and the key policies that are driving them.
India mulls closing dirtiest coal plants: Why the nation's coal fleet is in dire need of transformation
According to latest reports, India's power ministry is considering a proposal that may see the closure of some of the nation's dirtiest coal plants as policymakers seek to address the climate crisis.