Getting on Target: Accelerating energy access through fossil fuel subsidy reform
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
Indonesia's fiscal support for fossil fuels too large: IISD
The Indonesian government's fiscal support for fossil fuels is still too large, so it has the potential to slow down the energy transition and drain the public budget, according to the International Institute for Sustainable Development (IISD).
India must colour coal cash green for mining hubs to survive
Every year in October, cash registers ring in shops dotting east India's mining hubs during the Hindu festival season of Dussehra, when the country's biggest coal company, Coal India Ltd., hands its workers a bonus.
India's taxes and subsidies threaten clean energy growth in the country
After a slowdown during the first two years of the covid-19 pandemic, India’s renewable energy sector seems to be bouncing back in terms of investments. But recent studies raise doubts about the overall pace of the sector’s growth with finance emerging as a major impediment.
How increasing taxes and decreasing subsidies threaten India's clean energy growth
After a slowdown during the first two years of the COVID-19 pandemic, India's renewable energy sector seems to be bouncing back in terms of investments. But recent studies raise doubts about the overall pace of the sector's growth with finance emerging as a major impediment.