Fossil-Fuel Subsidy Reform Communique
The elimination of fossil-fuel subsidies would make a significant contribution to this shared objective.
By keeping prices artificially low, fossil-fuel subsidies encourage wasteful consumption, disadvantage renewable energy, and depress investment in energy efficiency. Fossil-fuel subsidy reform also has both economic and environmental benefits, thereby supporting our shared global commitment to sustainable development.
There is now an urgent need to convert these high-level commitments into practical action. This should be informed by the following three interrelated principles:
- Communication and Transparency about the merits of subsidy policies and reform timetables, including through engagement and communications with the general public and civil society stakeholders to ensure a smooth, inclusive, bottom-up approach to reform;
- Ambition in the scope and timeframe for implementing reforms; and
- Targeted support to ensure reforms are implemented in a manner that safeguards the poorest.
This Communiqué invites all countries, companies and civil society organizations to join us in supporting accelerated action to eliminate inefficient fossil-fuel subsidies in an ambitious and transparent manner as part of a major contribution to climate change mitigation.
You might also be interested in
Public Financial Support for Renewable Power Generation and Integration in the G20 Countries
G20 governments provided at least USD 168 billion in public financial support for renewable power in 2023, less than one third of G20 fossil fuel subsidies that year.
Unlocking Clean Power for All
This report uses tipping point theory to advise where public funding can be strategically directed to catalyze renewable energy deployment in developing and emerging economies.
G20 Governments are Spending Three Times as Much on Fossil Fuels as Renewables
G20 governments are spending three times as much on fossil fuels as renewables, research by the International Institute for Sustainable Development shows.
The Next Generation of National Climate Plans Must Phase Out Fossil Fuels
On the sidelines of the UN General Assembly, IISD is calling on governments to deliver ambitious, specific, and actionable national climate plans for the coming decade.