Making the Switch: From fossil fuel subsidies to sustainable energy
This report estimates fossil fuel subsidies to be around USD 425 billion. Such subsidies represent large lost opportunities for governments to invest in renewable energy, energy efficiency and sustainable development.
This report estimates fossil fuel subsidies to be around USD 425 billion. Such subsidies represent large lost opportunities for governments to invest in renewable energy, energy efficiency and sustainable development.
Removal of consumer subsidies can lead to carbon emission reductions (6 to 8 per cent by 2050 globally), Reductions that can be improved further with a switch or a "SWAP" towards sustainable energy. This report describes the scale and impact of fossil fuel subsidies on sustainable development. It describes the SWAP concept to switch savings made from fossil fuel subsidy reform, towards sustainable energy, energy efficiency and safety nets. The report provides potential SWAP outlines for Bangladesh, Indonesia, Morocco and Zambia. "Making the Switch" was written for the Nordic Council Ministers by the Global Subsidies Initiative of IISD and Gaia Consulting.
You might also be interested in
Bonn Climate Talks 2026: What to expect after Santa Marta
With UN climate talks starting in Bonn soon, the shift to implementation is being felt, especially in the transition away from fossil fuels.
What Happened in Santa Marta?
What happened at the first international conference on transitioning away from fossil fuels? IISD experts share 7 takeaways and discuss what comes next.
The USD 1.2 Trillion Problem: Why every energy crisis strengthens the case for clean public finance
Public financial flows including subsidies, state-owned enterprise investments, and international public finance remain fundamentally misaligned with climate and energy security goals, and leaving households and businesses vulnerable to global fossil fuel markets, new analysis finds.
Governments Spent Five Times More Public Money on Fossil Fuels than Renewables
New analysis finds that in 2024, public financial support for fossil fuels exceeded USD 1.2 trillion, compared with USD 254 billion for clean energy—meaning fossil fuels still received around five times more public support than renewables.