Jakarta, December 18, 2025 — Indonesia could save up to IDR 12 trillion a year, cut reliance on imported fuel, improve public health, and unlock long-term savings by accelerating a shift from subsidized liquefied petroleum gas (LPG) to electric induction cooking.

A new study by the International Institute for Sustainable Development, in collaboration with the National Research and Innovation Agency (BRIN), Indonesia’s Next Cooking Transition: Shifting to Non-Fossil Cooking, looks at how Indonesia can move away from LPG for cooking. It compares three alternatives—induction stoves, dimethyl ether (DME), and city gas—and finds that induction stoves are the most practical and viable option to support Indonesia’s shift to cleaner, non-fossil cooking.

“Induction cooktops provide a credible low-emission pathway for clean cooking in Indonesia, especially as the electricity system continues to decarbonize. As the electricity grid becomes cleaner, emissions from induction cooktops will naturally decline over time. In contrast, alternatives like DME lock households into fossil fuel use and impose subsidy burdens. The challenges with city gas stem from the burning of fossil fuels in the kitchen, the provision of long-lived infrastructure that risks being expensive and inflexible, and the burden of gas supply uncertainty,” said Maxensius Tri Sambodo, senior researcher at BRIN.

The report draws findings from focus group discussions, in-depth interviews, and household surveys in areas with direct experience in alternative cooking technologies, including induction pilot sites in Bali and Surakarta, and city gas users across urban locations. DME was assessed using only secondary data, reflecting on its limited real-world deployment.

Turning Subsidy Reform Into a Win–Win

Indonesia currently provides households 3-kg subsidized LPG cylinders. These subsidies cost the government trillions each year, with much of the financial support flowing to households that do not need it. The report shows that better targeting of the LPG subsidies and support for induction cooking among higher-income households could

• save IDR 7 trillion–IDR 12 trillion per year in public spending,
• reach fiscal breakeven within 3–5 years, and
• create new fiscal space to expand clean-cooking solutions for rural and remote communities.

The study points to smarter reallocation, which will protect low-income households while investing in long-term, resilient solutions.

The report notes that while LPG has helped Indonesia rapidly expand access to clean cooking, with nearly 84% of households continuing to rely on it, this success has come with growing fiscal and energy security pressures.

In 2023, LPG demand reached 8 million tonnes, but domestic production was only 2 million tonnes. This mismatch between domestic demand and production has caused an import bill of IDR 74 trillion (USD 4.8 billion), putting pressure on the government’s budget and underscoring the urgent need for a cleaner cooking alternative.

Induction Cooking: A practical opportunity for millions of households

The report finds that electric induction cooking is the most practical non-fossil cooking option for households connected to the grid—and one that delivers benefits quickly. For many families, induction cooking is already cheaper, safer, and easier than using unsubsidized LPG. 

Households in pilot programs reported cleaner kitchens, simpler cooking, and noticeable monthly savings when LPG usage fell. Importantly, investing in electricity upgrades to support induction cooking will also strengthen Indonesia’s broader energy transition goals, powering cooling, electric vehicles, rooftop solar, and home batteries. By combining electrification with renewable energy, Indonesia can move closer to its decarbonization goals.

“This is not just about changing stoves—it’s about modernizing how households access energy, while freeing up public funds to reach those who need support the most,” said Anissa Suharsono, energy policy associate at IISD.

Barriers vs. What Must Change to Unlock Induction Cooking Adoption

Media contact:

Anissa Suharsono, associate, energy policy, IISD, [email protected]  
Maxensius Tri Sambodo, senior researcher, BRIN, [email protected] 
Madhulika Verma, senior communications officer, IISD, [email protected]

About BRIN

Badan Riset dan Inovasi Nasiona (BRIN) is Indonesia’s national research and innovation agency, reporting directly to the President. It was created to integrate and coordinate all government research and development after merging former agencies like LIPI, BPPT, BATAN, and LAPAN. BRIN conducts and manages research across science and technology to support national development and policy needs.

December 16, 2025, New Delhi — Government support for fossil fuels in India fell to five times the level of clean energy in financial year (FY) 2024—the smallest gap in 5 years—as clean energy subsidies rose sharply, according to a new report released today.

Clean energy subsidies increased by 31% year-on-year to nearly INR 32,000 crore (USD 3.9 billion) in FY 2024, reflecting continued policy support for renewables, according to Mapping India’s Energy Policy 2025, a report by the International Institute for Sustainable Development.

Fossil fuel subsidies, by contrast, fell by 12%—the sharpest decline since the pandemic—although this drop was driven by temporary price dynamics rather than strategic policy reforms. Together, these trends have helped lift India’s non-fossil electricity capacity above 50% in 2025, 5 years ahead of schedule and a key milestone under India’s updated nationally determined contribution 2.0.

These trends signal progress in energy transition, but sustaining the momentum hinges on diversifying major energy-related public sector undertakings (PSUs). India’s public financial institutions, such as the Rural Electrification Corporation and Power Finance Corporation, are already expanding lending for renewables and distribution reforms. However, among PSUs, total capital allocation remains heavily skewed toward fossil fuels. In FY 2024, 83% of capital expenditure by central energy-related PSUs continued to flow into fossil fuel sectors, including coal mining, refinery construction, and oil and gas development. Clean energy diversification among state-owned enterprises (SOEs) remains limited in scale, raising the risk of locking in energy infrastructure that may not align with India’s long-term climate objectives.

“India’s budget shows encouraging signs of a gradual shift toward clean energy, but larger public financial flows reveal a deeper issue,” said Swasti Raizada, senior policy advisor at IISD and a lead author. “New investments in fossil assets are increasingly moving onto the balance sheets of India’s state-owned enterprises due to weak market signals. As critical state actors in ensuring a just and equitable energy transition, SOEs will need stronger policy signals and robust diversification plans to actively participate in India’s clean energy transition.”

The report also finds that electricity subsidies climbed to an all-time high of INR 2.1 lakh crore (USD 25 billion) in FY 2024—an 18% increase, despite electricity demand growing by only 7%. This widening gap between the cost of supply and consumer tariffs continues to strain state finances, indicating that efficiency gains and financial reforms in the power distribution sector are unable to contain rising subsidy burdens.

At the same time, India continued to rely heavily on revenue from fossil fuels, which brought in nearly INR 9 lakh crore (USD 108 billion)—about 16% of all government revenue across the centre and states. Fossil fuels still make up 90% of the country’s energy-related revenues, through excise duties, VAT, and GST collected on coal. This heavy dependence exposes public finances to global fuel price volatility and makes it harder for governments to create stable, long-term funding for clean energy.

"Fossil fuel use imposes significant social costs, but 79% of India’s fossil fuel tax revenue is paid by consumers,” said Saumya Jain, policy analyst at IISD and co-author. “The recent removal of the GST compensation cess on coal and reduction of taxes on ICE vehicles has diluted the polluter-pays approach. The government should align fossil fuel taxation measures to better reflect social and environmental costs, while exploring other goods and services where tax cuts can increase buying power for consumers. Some of the revenues from higher fossil taxation can be used to scale clean energy.”

The report sets out three priority recommendations to help redirect government support toward clean energy while supporting India’s development goals:

1. Improve targeting of electricity subsidies

   Better subsidy delivery—through smart metering, direct benefit transfers, and performance-linked grants to states—can help maintain affordability while containing fiscal growth in subsidy outlays. These reforms also strengthen distribution company finances and enable renewable energy integration through improved price signals.

2. Guide SOE capital expenditure toward clean energy priorities

   As India expands offshore wind, battery storage, and green hydrogen, SOEs can play a catalytic role by diversifying portfolios, adopting sustainability metrics, and reinvesting in emerging clean-tech supply chains. Shifting a part of SOE capital expenditure from fossil fuel expansion to clean infrastructure can accelerate India’s long-term energy independence goals.

3. Build fiscal resilience through revenue diversification

   Introducing next-generation measures—such as targeted carbon pricing, green taxes, and broader tax-base adjustments—can help gradually reduce reliance on volatile fossil revenues while supporting social and environmental objectives.

Media Contacts:

Swasti Raizada, senior policy advisor,  [email protected] 

Madhulika Verma, senior communications officer, [email protected]

Winnipeg—The International Institute for Sustainable Development (IISD) is pleased to announce that Nicolas Delaunay will join the organization as Director, Strategic Partnerships, effective February 2, 2026.

In this role, Nicolas will lead IISD’s global efforts to strengthen and diversify our partnerships and funding base, supporting a new five-year strategic plan to lead, innovate, and collaborate in tackling the world’s most pressing sustainability challenges. He will work closely with research and operations teams across IISD to build strategic relationships with governments, foundations, philanthropies, and corporate partners, ensuring that we deliver on our mission to transform bold ideas into real-world change that leaves no one behind.

“We’re thrilled to welcome Nicolas to IISD at such a vital moment for sustainable development,” said IISD President and CEO Patricia Fuller. “Strong partnerships form the backbone of our work and are critical in making an impact—we're confident that Nicolas's leadership will enable IISD to embark on new and innovative forms of results-focused collaboration.”

Bringing over 15 years of experience in international development and sustainability, Nicolas has held senior roles with leading global organizations such as Rainforest Foundation Norway, Global Water Partnership, and Emirates Nature – WWF. He has also facilitated strategic planning and resource mobilization for Fairtrade International, the OECD-DAC Arab Coordination Group, WWF Zambia, and UN-Water. Nicolas has a deep commitment to sustainability and building strong partnerships to help solve complex issues.

“Joining an institution playing such a prominent role in sustainable development research and policy is a privilege,” he said. “It strikes me that IISD’s ability to address the root causes and systemic solutions to accelerating and interconnected environmental and social crises is more needed than ever. I look forward to working with financing partners to help deliver on this high-impact agenda.”

Based in Oslo, Norway, Nicolas will work closely with IISD’s staff of more than 300 experts located across the globe.

For further information or press inquiries, please contact [email protected]
 

December 9, 2025, New Delhi—India can secure reliable, round-the-clock clean power at costs competitive with new thermal plants by 2030 under realistic market conditions, with the possibility of achieving cost parity as early as 2025 under more favourable circumstances, a new report found.

The study, Budgeting for Net Zero: Powering India’s Reliable Clean Energy Future by the International Institute for Sustainable Development (IISD) and the Center for Study of Science, Technology and Policy, finds that firm and dispatchable renewable energy (FDRE)—hybrid projects combining solar, wind, and battery storage—can match or undercut the cost of new thermal power plants when developers are able to monetize both a portion of surplus electricity generated by oversized renewable sources and additional storage capacity.

FDRE projects install slightly more renewable and storage capacity than required for their contracted supply; selling this surplus power plays a critical role in lowering overall costs. FDRE—one of several types of tenders for firm clean energy—is already much cheaper than new coal when the full social costs of thermal power plants are considered. 

Without accounting for social costs, the study identifies three cost-parity timelines, depending on how much surplus power developers can sell into the market:

• 2025 when 100% of surplus power is monetized,
• 2030 when 50% of surplus power is monetized, and
• 2047 when only 30% of surplus power is monetized.

“Firm and dispatchable renewables are not just a clean alternative—they are an increasingly competitive source of reliable power. With thoughtful tender design and market reforms, India can tap into FDRE to meet rising electricity demand, cut long-term costs, and build a power system that is both resilient and future-ready,” said Sunil Mani, policy advisor at IISD.

The study examines when and under what conditions FDRE can compete with new thermal, whether government support is needed to accelerate deployment, and the macroeconomic impacts of scaling FDRE. It also evaluates how tender design, developer strategies, and electricity market reforms influence FDRE’s affordability.

FDRE marks an important shift in India’s clean energy procurement. Instead of simply adding variable renewable energy to the grid, FDRE tenders require developers to supply clean electricity at specific, often peak hours aligned with distribution companies’ (discoms’) demand patterns. This is becoming increasingly relevant as India’s power needs rise and discoms face higher costs from managing variability through short-term markets and limited access to flexible supply. FDRE offers one pathway to scale renewables while maintaining reliability and cost predictability for both discoms and consumers.

Although early FDRE tenders have faced challenges—such as uncertainty around the optimal renewable–storage mix and the monetization of surplus power—9.7 GW of FDRE capacity is already under construction, and bid prices closely match the cost projections in the study.

The report stresses that FDRE is not meant to replace all other clean energy solutions. Because FDRE guarantees firm delivery, it is naturally more expensive than standalone solar, wind, or storage when round-the-clock supply is not required. The authors of the report highlight that a balanced approach—deploying FDRE where demand profiles justify it and expanding lower-cost clean energy and storage elsewhere—will deliver the most efficient outcomes for India’s evolving power system.

“FDRE can play an important role alongside standalone renewables, storage, and smarter grid management to support India’s clean energy transition,” says Dr Anasuya Gangopadhyay,  senior associate in the Climate Change Mitigation team at CSTEP.

Beyond Energy Costs: Health, climate, and jobs

The report also highlights that comparing FDRE and coal solely on energy costs ignores coal’s full societal costs.  When air pollution and climate damages are included, the effective cost of new pithead coal rises from INR 4.65/kWh to INR 13.19/kWh, making FDRE immediately cheaper in all scenarios.

In addition, FDRE provides energy security advantages: it reduces exposure to fossil fuel price volatility and can be deployed in 2–2.5 years, compared to 5–7 years for new coal plants.

Beyond costs, scaling FDRE would raise India’s GDP by 1.8% by 2050, create 64,000 net new jobs, and reduce public health costs linked to air pollution while strengthening energy security by lowering dependence on fuel imports.

The study identifies several policy options to strengthen FDRE tender design and create market conditions that support deployment, including more flexible demand-fulfilment ratios, capacity payments for storage, improved penalty structures, expanded revenue opportunities, and enhanced resource adequacy planning at the state level.

Media contacts:  

Sunil Mani, policy advisor, IISD – [email protected]

Madhulika Verma, senior communications officer, IISD: [email protected]

About CSTEP

The Center for Study of Science, Technology and Policy (CSTEP) is one of India’s leading think tanks, with a mission to enrich policy-making with innovative approaches using science and technology for a sustainable, secure, and inclusive society. Our current work is anchored in the grand challenges of our time, namely, Clean Energy Transition, Clean Air for All, and Sustainable and Secure Future for All. Our work focuses on ensuring that our ideas are born out of evidence and implementable at scale. We are continuously exploring new ideas that will play a crucial role in addressing our grand challenges. We are committed to an Ecosystem Approach and to achieving this through multiple partnerships across the ecosystem.

December 3, 2025, Jakarta — Indonesia’s coal phase-out requires strong support and commitment from the government to develop more inclusive just transition policies that protect vulnerable groups and support region-specific economic diversification to counter economic and social impacts, according to a new study.

The study, by the International Institute for Sustainable Development and Traction Energy Indonesia, highlights that Indonesia’s shift away from coal presents a powerful opportunity to meet its 2030 climate targets while strengthening local economies—provided the transition is managed carefully and inclusively.

In coal-dependent regions, where coal contributes up to 80% of GDP, and many residents work informally, qualitative research through focus group discussions, interviews, and community engagement revealed that people are deeply concerned about how they will sustain livelihoods beyond coal. These insights also surfaced gender-specific challenges and local priorities that modelling alone often misses. Many communities feel excluded from decision making and uncertain about their future: women see fewer re-employment opportunities, youth are anxious about education and jobs, and older residents worry about reduced welfare support.

The study also used economic modelling to examine the potential impacts of coal closures and identify pathways to safeguard jobs, local economies, and vulnerable groups across five coal-intensive regencies and five provinces in Indonesia. The effects of the energy transition varied widely across regencies. 
For example, potential job losses ranged from 5,000 in Sarolangun regency to 24,500 in Muara Enim. The employment impact did not always correspond directly with the magnitude of economic losses, reflecting structural differences in industrial composition and labour intensity across Indonesia’s coal-producing regions.

Unsurprisingly, the more diversified economies showed greater resilience against coal closures. These findings reinforce the need for region-specific just transition strategies, including economic diversification, worker retraining, welfare support, and investment in sustainable sectors tailored to the local economic structure.

“Accelerating the energy transition offers Indonesia a chance to build new industries and create more resilient, inclusive economies,” said Bathandwa Vazi, policy advisor, IISD. “If we prepare early, coal-dependent regions can transform risk into opportunity—protecting decades of development progress and driving new pathways for growth.”

At the provincial scale, East Kalimantan’s economy is currently highly dependent on coal, meaning the province faces significant exposure in a transition, including output losses of USD 42 billion, sectoral income decline of USD 5.5 billion, and over 490,000 jobs at risk.

Yet the modelling also shows a clear pathway forward: with targeted investment in dynamic sectors like food and beverage manufacturing and renewable energy, the region could not only offset projected losses—it could generate up to 2.5 million new jobs and build a more diverse, resilient economy.A just energy transition will also require targeted policies for informal workers, including retraining for green sectors, support for small to medium-sized enterprises, and robust social protection. Such measures are essential to ensure the transition promotes equitable outcomes for communities most at risk. Policies need to be developed with communities and workers to ensure their needs and priorities are addressed in the final package.

“Our findings show deep regional disparities in how the coal transition will impact communities. Transition planning can turn risks into opportunities for more stable, inclusive, and sustainable long-term growth, but communities need to be involved every step of the way,” says Refina Muthia Sundari, program manager at Traction Energy Asia. For policy-makers, the lesson is clear: to succeed, just transition policies must be locally informed, gender responsive, and rooted in inclusive, multi-level governance. By prioritizing green sector development, gender equality, disability and social inclusion (GEDSI), and institutional coordination, Indonesia can transition from a coal-dependent economy to a resilient, low-carbon, and inclusive future.

Media Contact

Bathandwa Vazi, policy advisor, IISD: [email protected]
Istu Septania, communications consultant: [email protected] 
Madhulika Verma, senior communications officer, IISD: [email protected]

About Traction Energy Asia

Traction Energy Asia is an independent think tank and strategic convenor leading Indonesia’s clean energy transition within a low-carbon economy. Our organization addresses the urgent need to mitigate the impacts of current energy choices on Indonesia’s unique biodiversity and ecosystems, while countering the growing threat of climate change.

November 14, 2025, Johannesburg—South Africa’s plans for a just energy transition risk leaving communities behind unless they are grounded in local realities and built on long-term, trust-based engagement, according to new research.

The study by the International Institute for Sustainable Development (IISD) and the Public Affairs Research Institute (PARI) reveals a deep disconnect between national policy and community experience in Mpumalanga’s coal towns, where residents perceive the transition as an external, top-down process. Researchers warn that procedural justice—genuine participation and shared decision making—remains the missing link in the country’s transition.

Over the course of a year, researchers conducted ethnographic fieldwork in Phola, Komati, Hendrina, Kriel, and eMalahleni, engaging with 43 community members, business owners, and local officials through participant observation, interviews, and focus groups.

The study mapped both formal and informal roles in the coal value chain, showing how mine closures are reshaping livelihoods, services, and local economies—especially for women and other marginalized groups.

A pilot project in Phola, eMalahleni went a step further, mapping 275 local businesses, public assets, and informal networks to understand how communities envision a post-coal economy. It found that informal livelihoods, the care economy, and local food systems are critical entry points for sustainable local development.

The pilot showed that working with communities and building local strengths can increase ownership and make transition planning fairer and more inclusive.

“Just transition cannot be just in name only; it must be just on the ground,” says Bathandwa Vazi, policy advisor at IISD and the lead author of the report. “Our work in Mpumalanga shows that effective transition projects must be built with communities, not simply for them. Ethnographic research has taught us how trust building should be done to draw communities into policy-making, making them part of the process.”

The findings highlight that just energy transition planning processes are often unclear, top-down, and insufficiently transparent, with women and informal workers excluded from decision making. The researchers argue that without deeper local engagement, the transition risks further entrenching inequalities.

“A truly just transition depends on relationships,” said Mahlatse Rampedi, researcher at PARI. “Procedural justice should mean more than a consultation checklist—it’s about ensuring communities see their realities reflected in the policies shaping their futures.”

To ensure a fair and inclusive transition, the study recommends to-

• Adopt co-production as core planning principal: Involve communities, especially women, youth and marginalized groups from the earliest stage of decision making.
• Build government capacity for community engagement: Develop training programs to help officials in building their skills in community research—such as in mapping the resources, strengths, and networks that exist within local communities, trust building, and inclusive engagement that goes beyond standard public consultations.
• Align Local Development Plans with Just Transition: Municipalities should align their development plans to reflect community priorities by integrating co-production results. These plans should address the risks and opportunities of energy transition and support fair and equitable local development.
• Use Local Data to Guide Transition Planning: Before closing any coal facility, build relationships in affected communities and gather insights into local economies, care systems, and social networks. This information should shape job transition plans, retraining programs, and community support services.

Media Contact

Bathandwa Vazi, Policy Advisor, IISD: [email protected]
Madhulika Verma, Senior Communications Officer, IISD: [email protected]
 

About PARI

PARI is an African research institute affiliated to the University of Johannesburg and Wits University, providing new and original social science research, advocacy and implementation support for South Africa, the global South and beyond.

Raipur, November 7, 2025—Chhattisgarh's energy sector received more than INR 16,672 crore in government support in FY2024—but subsidies and investments for fossil fuels were four times higher than those for renewable energy, finds a new report that urges the state to diversify its support toward clean energy to safeguard its economy and communities.

The analysis by the International Institute for Sustainable Development and Swaniti Initiative, Mapping India’s State-Level Energy Transition: Chhattisgarh, shows that of the total support, INR 12,648 crore (USD 1.5 billion) came in the form of subsidies, while public sector undertakings invested INR 4,024 crore (USD 465 million). Coal received the largest share of all quantified subsidies (26%), while renewable energy accounted for only 8% of support.

At the same time, energy-related revenues in Chhattisgarh reached INR 22,532 crore (USD 2.7 billion)—22% of the state’s total revenues. In total, 80% of the energy-related revenues came from fossil fuels—38% from coal and 40% from oil and gas—leaving the state heavily exposed to shifts in future energy landscapes.

“Proactive fiscal planning has never been more important for Chhattisgarh," said Shruti Sharma, Lead in Affordable Energy at IISD. “With nearly a quarter of state revenues tied to fossil fuels, diversifying energy resources and revenue streams is critical to protect jobs, secure long-term growth, and deliver on the state’s vision of Viksit Chhattisgarh 2047.”

With the state’s economy anchored in coal, the report outlines a roadmap for how Chhattisgarh can leverage its traditional energy strengths to lead a just and sustainable transition, safeguarding its economy and communities while aligning with India's national clean energy goals.

The study found that Chhattisgarh, with just 2% of India’s population, provides a substantial share of the nation's energy supply, producing over 21% of its fossil fuels and hosting 7% of its installed thermal power capacity. This presents a significant opportunity for the state to spearhead innovation and investment in the clean energy sector.

The authors of the report urge state and central governments to

• align government support with net-zero targets by establishing clear milestones in Chhattisgarh’s Vision 2047 plan and partnering with NITI Aayog on a green-budgeting exercise.
• better target electricity subsidies to low-income, low-consuming households and redirect savings into rooftop solar, solar pumps, small-scale wind, and repurposed thermal assets.
• diversify revenue beyond coal, oil, and gas by enhancing production of minerals like iron ore, bauxite, and limestone, and align industrial development with the state’s long-term decarbonization goals.
• establish a state-led coordination committee with key departments and stakeholders to design social support mechanisms for coal-dependent workers and communities, while collaborating with the Ministry of Coal and coal firm Southeastern Coalfields Limited to diversify operations, create alternative employment, and drive just transition planning.

Recognizing the need for just transition, particularly in older coal regions where resource exhaustion has already set in, the Swaniti Initiative also assessed the coal transition vulnerability of 52 districts in India through an index. The findings show that nearly 20 of the 52 districts show high levels of vulnerability. Of the six coal districts of Chhattisgarh, three are highly vulnerable. 

“Chhattisgarh will be a high coal-producing state in the coming decade; however, some of its old regions, such as Chirimiri, where coal reserves have depleted, will need immediate planning. This can also serve as a blueprint for future just transition planning in districts which are currently producing big,” said Chinmayi Shalya, Senior Fellow, Swaniti Initiative.

The report recommends that Chhattisgarh proactively plan its energy transition, identifying significant areas where state budgeting can drive local economic growth, create jobs, and improve energy access for its people, while aligning with national policy objectives.

Media contacts

Shruti Sharma, Lead - Affordable Energy, IISD: [email protected] 
Madhulika Verma, Senior Communication Officer, IISD: [email protected] 
Chinmayi Shalya, Senior Fellow, Swaniti Initiative: [email protected]

About Swaniti Global Initiative

Swaniti Global Initiative (SGI) believes that the climate is a time-bound crisis, and the clock is ticking. We need an ‘all-hands-on-deck’ approach to resolve the crisis. Thus, we work to the strength of each community stakeholder to create impact. Specifically, we unlock government resources and connect to reach last mile beneficiaries, leverage the effective models of private sector and civil society partners, and sustain programs through the passion and commitment of communities. With these prongs Swaniti leverages it’s talented teams within communities to assess gaps, find the right partners and then implement programs in a time on ground and build the capabilities of communities to sustain them through tech powered tools and local platforms. 
 

International public finance for fossil fuels from 40 signatories of the Clean Energy Transition Partnership (CETP) has fallen by up to 78% (USD 11.3–USD 16.3 billion annually) in 2024 compared with 2019–2021 levels, before the alliance was formed. This showcases how coordinated international action on climate can deliver rapid results. 

Excluding support from the United States, which left CETP in February 2025, the decline is even more pronounced: an up to 81% drop in international public finance for fossil fuels. 

These findings are outlined in a new study, Holding Course, Missing Speed: Protecting Progress on Ending Fossil Fuel Finance and Unlocking Clean Energy Support, released today by the International Institute for Sustainable Development, Oil Change International (OCI), and Friends of the Earth U.S. 

It assesses how far CETP signatories have come, 2 years after their deadline to deliver on the pledge to fully end international public finance for fossil fuels. 

“The dramatic drop in fossil fuel finance among CETP members shows that collective action works. Countries that commit to first-mover initiatives like this can deliver real results quickly.”

Natalie Jones, Senior Policy Advisor, IISD 

The authors found 10 of the 17 high-income members have fully aligned their energy finance policies with the pledge, demonstrating strong climate leadership, but others—including Germany, Italy, Switzerland, and the United States prior to leaving CETP—approved USD 10.9 billion in fossil fuel finance in violation of the commitment. 

Export credit agencies play an outsized role in remaining fossil fuel finance, accounting for USD 4.7 billion, or 72%, of the total. Reforming these institutions is critical for completing the transition away from public fossil fuel support, the report notes.

“CETP has set a new global norm, with billions in international public finance permanently shifting away from fossil fuels.”

Adam McGibbon, Public Finance Campaign Strategist, OCI

 “The more it succeeds, the more isolated the remaining countries outside of it appear. It's time for the remaining laggards to get on board—in particular, the new South Korean government can score an early diplomatic win by joining the initiative, setting a new standard for climate leadership in Asia.”

While the partnership has driven a historic reduction in fossil fuel financing, progress on clean energy finance is far slower. CETP countries increased support for renewable energy by only USD 3.2 billion in 2024 compared with 2019–2021, meaning less than one-fifth of the funds shifted from fossil fuels have been redirected. 

“The next challenge is ensuring clean energy finance keeps pace,” said Kate DeAngelis, Economic Policy Deputy Director at Friends of the Earth U.S.

“Without rapid scaling of support for renewable projects, especially in emerging and developing economies, the full potential of the CETP will remain untapped.”

 

To ensure progress across the board, the report calls on CETP members to: strengthen implementation and oversight of fossil fuel finance restrictions; commit to a collective clean energy finance target of at least USD 42 billion annually by 2026; develop whole-of-government strategies to deliver public clean energy finance on fair terms that support a just transition; and align domestic policy with international commitments by ending subsidies and approvals for new oil and gas projects at home.

Launched at the 26th UN Climate Change Conference in Glasgow in November 2021, the CETP includes 40 signatories—35 countries and five public finance institutions—who pledged to end fossil fuel finance by the end of 2022 and fully prioritize clean energy instead, covering support through export credit agencies, development finance institutions, and official development assistance.

ENDS

Notes to Editors

The data from this report is now available from the Public Finance for Energy Database, a free database tracking international public finance flows that has also been updated with FY2023/24 data to coincide with the launch of this report: www.energyfinance.org.

Full quotes

“The CETP has set a new global norm, with billions in international public finance permanently shifting away from fossil fuels. The more the CETP succeeds, the more isolated the remaining countries outside of it appear. It's time for the remaining laggards to get on board—in particular, the new South Korean government can score an early diplomatic win by joining the initiative, setting a new standard for climate leadership in Asia.”

– Adam McGibbon, Public Finance Campaign Strategist, OCI

“The dramatic drop in fossil fuel finance among CETP members shows that collective action works. Countries that commit to first-mover initiatives like this can deliver real results quickly.”

– Natalie Jones, Senior Policy Advisor, IISD

“The next challenge is ensuring clean energy finance keeps pace. Without rapid scaling of support for renewable projects, especially in emerging and developing economies, the full potential of the CETP will remain untapped.”

– Kate DeAngelis, International Finance Deputy Director, Friends of the Earth U.S.

Media Contacts

Aia Brnic, Communications Manager, IISD: [email protected]

Juliah Kibochi, Public Finance Communications Campaigner, OCI: [email protected]  

About Oil Change International

Oil Change International is a research, communication, and advocacy organization focused on exposing the true costs of fossil fuels and facilitating the coming transition towards clean energy.

About Friends of the Earth U.S.

Friends of the Earth United States fights to protect the environment and create a healthy and just world. We speak truth to power and expose those who endanger people and the planet. Our campaigns work to hold politicians accountable and transform our economic systems.

STOCKHOLM – A major new report published today finds that 10 years after the Paris  Agreement, governments plan to produce about more than double (120%) the volume of fossil fuels in 2030 than would be consistent with limiting global warming to 1.5°C, and 77% more than would be consistent with 2°C. 

Implementing these plans would take the world further from the goals of the Paris Agreement, even as countries submit new climate commitments intended to fulfill their contributions to the pact. When this assessment was last performed in 2023, the fossil fuel production gap was 110% above the 1.5°C warming pathway and 69% more than the 2°C pathway.  These findings underscore the importance of upholding the 2023 UAE Consensus at the 28th UN Climate Conference (COP 28) to transition away from the use of fossil fuels in energy systems and phase out inefficient fossil fuel subsidies. 

The main findings of the 2025 Production Gap Report include the following: 

• Since the 2023 analysis, governments now plan even higher levels of coal production to 2035 and gas production to 2050. Planned oil production continues to increase to 2050.
• To meet Paris Agreement goals of holding warming to well below 2°C while pursuing efforts to limit warming to 1.5°C, the world must now undertake steeper and faster reductions in fossil fuel production to compensate for the lack of progress so far. Meanwhile, governments' expanding fossil fuel infrastructure wastes public funds on development destined to become stranded assets.
• Achieving these reductions will require deliberate, coordinated policies to ensure a just transition away from fossil fuels. While a few major fossil fuel-producing countries have begun to align production plans with national and international climate goals, most still have not.

The 2025 Production Gap Report is produced by Stockholm Environment Institute (SEI), Climate Analytics, and the International Institute for Sustainable Development (IISD). It assesses governments’ planned and projected production of coal, oil, and gas against global levels consistent with limiting global warming to 1.5°C or 2°C. 

“In 2023, governments formally acknowledged the need to move away from fossil fuels to mitigate climate change—an obligation the International Court of Justice has now clearly emphasized,” says Derik Broekhoff, coordinating lead author of the Production Gap Report and Climate Policy Program Director at SEI’s U.S. Center. 

“But as our report makes clear, while many countries have committed to a clean energy transition, many others appear to be stuck using a fossil fuel-dependent playbook, planning even more production than they were 2 years ago.” 

 

The 2025 Production Gap Report provides new analysis for 20 major fossil-fuel-producing countries responsible for about 80% of global fossil fuel production: Australia, Brazil, Canada, China, Colombia, Germany, India, Indonesia, Kazakhstan, Kuwait, Mexico, Nigeria, Norway, Qatar, the Russian Federation, Saudi Arabia, South Africa, the United Arab Emirates, the United Kingdom, and the United States. 

These profiles show that 17 of the 20 featured countries still plan to increase production of at least one fossil fuel to 2030. Eleven now expect higher production of at least one fossil fuel in 2030 than they had planned in 2023. On the other hand, 6 of the 20 profiled countries are now developing domestic fossil fuel production aligned with national and global net-zero targets, up from four in 2023.  

“To keep the 1.5°C goal within reach, the world needs rapid reductions in coal, oil, and gas investments, redirecting these resources toward an energy transition that prioritizes equity and justice,” says Emily Ghosh, coordinating lead author and Equitable Transitions Program Director at SEI U.S. 

“By COP 30, governments must commit to expand renewables, phase out fossil fuels, manage energy demands, and implement community-centered energy transitions to align with Paris Agreement obligations. Without these commitments, delaying action further will lock in additional emissions and worsen climate impacts on the world's most vulnerable populations.” 

 

More than 50 researchers from all over the globe contributed to the analysis and review, spanning numerous universities, think tanks, and other research organizations.

Reactions to the 2025 Production Gap Report 

“Let this report be both a warning and a guide. Renewables will inevitably crowd out fossil fuels completely, but we need deliberate action now to close the gap on time. What we need now is courage and solidarity to move forward at great speed with the just transition." 

– Christiana Figueres, former Executive Secretary of the UNFCCC 

“The increase in fossil fuel expansion plans over the last 2 years is alarming. While many governments see renewables as key to their energy security, others are betting against the clean energy transition. To avert the worst climate impacts with minimal economic disruption, governments need to commit to no new fossil fuels and back the clean industries of the future.” 

– Olivier Bois von Kursk, report co-author and policy advisor at the International Institute for Sustainable Development 

“Ten years after Paris, renewables are way out in front of the pack. Instead of getting in the race, governments are blundering backwards towards our fossil past. While it’s frustrating seeing public money squandered on what will inevitably become stranded assets, it’s intolerably unjust to think about the human and environmental costs of these fossil expansion plans, especially for the most vulnerable.”  

– Neil Grant, report co-author and senior expert at Climate Analytics 
 

Notes to Editors 

About the Production Gap Report 

Modelled after the United Nations Environment Programme's Emissions Gap Report series—and conceived as a complementary analysis—this report conveys the large discrepancy between countries' planned fossil fuel production and the global production levels consistent with limiting warming to 1.5°C and 2°C. 

About Stockholm Environment Institute 

Stockholm Environment Institute is an international non-profit research institute that tackles climate, environmental, and sustainable development challenges.  
We empower partners to meet these challenges through cutting-edge research, knowledge, tools, and capacity building. Through SEI’s HQ and seven centres around the world, we engage with policy, practice, and development action for a sustainable, prosperous future for all. 

About Climate Analytics 

Climate Analytics is a global climate science and policy institute engaged around the world in driving and supporting climate action aligned to the 1.5°C warming limit. We connect science and policy to empower vulnerable countries in international climate negotiations and inform national planning with targeted research, analysis, and support. 

About the International Institute for Sustainable Development 

The International Institute for Sustainable Development (IISD) is an award-winning independent think tank working to accelerate solutions for a stable climate, sustainable resource management, and fair economies. Our work inspires better decisions and sparks meaningful action to help people and the planet thrive. We shine a light on what can be achieved when governments, businesses, non-profits, and communities come together.  IISD’s staff of more than 250 experts come from across the globe and from many disciplines. With offices in Winnipeg, Geneva, Ottawa, and Toronto, our work affects lives in nearly 100 countries. 

For more information, please contact: 

Ulrika Lamberth, ph: +46 73 801 7053, Senior Press Officer (Stockholm, Sweden), and  Lynsi Burton, ph: +1 360 485 3041, Communications Officer (Seattle, U.S.), Stockholm  Environment Institute 

Paul May, Head of Communications, and Neil Grant, Climate and Energy Analyst, Climate Analytics (Berlin, Germany) 

Megan Darby, Senior Communication Associate (London, United Kingdom), and Aia Brnic, Communications Manager, International Institute for Sustainable Development (Geneva, Switzerland)

The governments of Canada and British Columbia are set to provide more than CAD 3.93 billion in support to the liquefied natural gas (LNG) industry by the end of 2030, according to a new study by the International Institute for Sustainable Development.

This support means the Canadian public, not the project proponents, are bearing much of the increasing costs and risks of LNG expansion.

But it’s not too late: policy-makers can still prevent this outcome by redirecting resources away from fossil fuels and toward the priorities of taxpayers.  

Released today, IISD’s report Launching a Loss: An inventory of government support for BC LNG offers the most recent and comprehensive estimate of government financial support for BC’s LNG export industry to date, with projections to the end of 2030. The estimate does not account for potential support for the LNG Canada Phase 2 project.  

The findings include:

• CAD 1.62 billion in public finance and CAD 151.95 million in infrastructure funding from the federal government.
• CAD 2.16 billion by the end of 2030 from the BC government through foregone revenue, reduced electricity rates, and investment in enabling infrastructure.  

The combined support of CAD 3.93 billion is likely a low estimate, as it does not factor in non-quantifiable benefits such as the 2019 waiver on steel tariffs.  

“LNG projects come with a high price tag and much of that cost is being carried by the public,” says Danielle LaBrash, policy advisor at IISD and co-author of the report. “These subsidies slow down the energy transition, embed emissions in the Canadian economy, and tie up resources that could otherwise support workers, communities, and cleaner energy sources.”

The report finds that LNG Canada Phase 1 project is the single greatest beneficiary of public support, with about CAD 1.36 billion committed by the end of 2030, while the Coastal Gaslink Pipeline has also received about CAD 700 million in public finance.

And although market forecasts predict a glut of LNG supply in the coming years and a peak in global gas demand in the early 2030s, the government has signaled further public support for LNG projects. Prime Minister Mark Carney on September 11 announced LNG Canada Phase 2 as a priority for review. Phase 1, which came online this summer, was delayed and ran 29% over budget. Phase 2 risks similar setbacks and is also expected to enter an already oversupplied market—raising the likelihood that additional public support will be required to see it through. 

For a secure nation-building strategy, the report recommends:

• The Canadian and BC governments should ensure the costs and risks of LNG expansion are borne by project proponents—not the public.
• The federal government should end all domestic financing for new fossil fuel projects.
• The provincial government should make approval of any new project conditional on credible alignment with climate plans, without reliance on subsidies.

“Understanding the scale and impact of public support for LNG is the first step to reforming it. It’s not too late for governments to redirect these resources toward projects that deliver tangible benefits for communities, workers, and the climate,” LaBrash says.  

Join co-author Danielle LaBrash in our September 18 webinar covering the report’s findings.

Media Contact

Nick Pearce

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