Getting on Target: Accelerating energy access through fossil fuel subsidy reform
How can reforming fossil fuel subsidies accelerate universal energy access (SDG 7)? This paper reviews the financial and practical implications of fossil fuel subsidies for SDG 7.
Sustainable Development Goal (SDG) 7 calls upon the global community to ensure access to affordable, reliable, sustainable and modern energy for all by 2030.
Often people assume that fossil fuel subsidies help the poor by making energy more affordable. In fact, most fossil fuel subsidies are not working well for energy access and poverty goals. The annual fossil fuel subsidy expenditure of USD 425 billion could be better invested by governments towards SDG outcomes. This is already recognized by SDG 12, in which the UN General Assembly’s 193 members included the reform of inefficient fossil fuel subsidies as a means of implementation to achieve more sustainable consumption and production. Subsidy savings could be invested to get on target for many development goals—not least, those on energy access.
This paper reviews the financial implications of fossil fuel subsidies and takes a closer look at how reforming fossil fuel consumption subsidies could interact with energy access goals.
You might also be interested in
Five Key Priorities to End Fossil Fuel Subsidies in Canada
As the G7 president in 2025, Canada has a pivotal opportunity to lead by fully phasing out fossil fuel supports and investing in a cleaner, more equitable future. Here are five recommendations for effective subsidy reform.
The Cost of Fossil Fuel Reliance
Government support for fossil fuels reached at least USD 1.5 trillion in 2023, new data shows.
Increased Support Needed to Achieve India's Clean Energy Goals
India is on track to achieve many of its 2030 clean energy goals but needs to step up government support measures to accelerate the deployment of offshore wind, electric vehicles, and green hydrogen, according to a new report.
Budgeting for Net Zero
This study estimates the cost gap for battery energy storage systems (BESSs), offshore wind, solar photovoltaic (PV), electric vehicles (EVs), and green hydrogen (GH2) to inform government support.