Fossil Fuel Subsidy Reform and the Just Transition: Integrating approaches for complementary outcomes
This paper goes into detail about the various ways in which FFSR can be consistent with just transition. The scale of current fossil fuel subsidies in the world coupled with the massive financial needs for transition are early indicators of the benefits of approaching FFSR with just transition in mind.
This report articulates how fossil fuel subsidy reform (FFSR) can contribute to a just transition, and how a just transition framework can contribute to successful reform.
The report explores a number of reasons for a framework, including alignment of the objectives of FFSR and just transition and, very importantly, FFSR’s ability to unlock revenues for implementing just transition.
Fossil fuel subsidies act against sustainability, while reform is consistent with just transition principles. These subsidies exacerbate greenhouse gas emissions, which contribute to climate change: removing global subsidies to fossil fuel production would save 37 Gt of carbon dioxide emissions by 2050. The elimination of all subsidies to fossil fuel production and consumption globally will reduce emissions by roughly 10 per cent.
This report goes into detail about the various ways in which FFSR can be consistent with just transition. The scale of current fossil fuel subsidies in the world coupled with the massive financial needs for transition are early indicators of the benefits of approaching FFSR with just transition in mind. Leveraging this misspent finance to support just transition is just one of many ways in which these issues can coalesce.
Participating experts
Additional downloads
You might also be interested in
Rethinking Investment Treaties
The reports maps out how the treaty system can be redesigned from the bottom up to accelerate—rather than obstruct—genuine sustainable development and international cooperation.
South African Fossil Fuel Subsidies Hit Record Highs as Country's Energy Crisis Deepens
South Africa's fossil fuel subsidies tripled between 2018 and 2023, hitting USD 7.5 billion, up from USD 2.9 billion 5 years earlier, a new report by IISD reveals.
Blackouts and Backsliding: Energy subsidies in South Africa 2023
Blackouts and Backsliding presents the latest energy subsidy data for South Africa.
Transitioning Away From Oil and Gas
At COP 28, 198 governments agreed to transition away from fossil fuels. What are the next steps for a global phase-out of oil and gas production?