From Commitment to Implementation
Guidance for governments on fossil fuel subsidy phase-out plans
This publication provides practical, politically informed guidance to help governments design and implement fossil fuel subsidy phase-out plans. It outlines a three-step framework—whole-of-government coordination, subsidy categorization, and implementation planning—to support credible, time-bound, and country-specific reform strategies.
Policy Recommendations
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Governments need clear, time-bound fossil fuel subsidy phase-out plans to move from commitments to implementation and ensure predictable, accountable reform.
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A whole-of-government approach—spanning finance, energy, social, and sector ministries—is essential for coherent planning, stakeholder engagement, and durable fossil fuel subsidy reform.
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Fossil fuel subsidies should be categorized by reform timelines—quick phase-out, phase-out with a robust strategy, or time-limited exemption—using transparent criteria on impacts and feasibility.
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Implementing fossil fuel subsidy phase-out plans requires clear responsibilities, mitigation measures, and regular progress reviews to secure public trust, avoid reversals, and deliver lasting benefits.
Despite long-standing global commitments, progress on reform has been slow, often hindered by political pressures, institutional fragmentation, and the absence of actionable roadmaps. This publication offers clear, practical guidance to translate commitments into implementation through robust fossil fuel subsidy phase-out plans.
The guidance is grounded in country-specific realities and is structured around a three-step framework. Step 1 sets out how to establish a whole-of-government approach that ensures coherent planning, alignment with national priorities, and effective stakeholder engagement. Step 2 introduces a systematic method for categorizing subsidies by phase-out timelines—quick phase-out, phase-out with a robust strategy, and time-limited exemptions—supported by a decision tree that evaluates energy security, socio-economic and environmental impacts, and political feasibility. Step 3 outlines how to turn these classifications into concrete action plans with clear responsibilities, milestones, mitigation measures, and annual review cycles.
This guidance equips governments with a structured, adaptable, and politically informed approach to make fossil fuel subsidy reform a success. It supports early wins, builds public trust, and helps avoid reversals by embedding reforms into stable policy processes.
Participating experts
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