Tackling Fossil Fuel Subsidies and Climate Change

Levelling the energy playing field

image of Tackling Fossil Fuel Subsidies and Climate Change

This report presents research on fossil fuel subsidy reform across 20 countries and reveals an average reduction in national GHG emissions of 11% by 2020 from potential reform, and savings of USD 93 per tonne of CO2. With modest recycling of resources to renewables and energy efficiency, reductions can be improved. Countries are including reforms in contributions towards a climate agreement. Authored by the Global Subsidies Initiative as part of the Nordic Prime Ministers' green growth initiative www.norden.org/greengrowth



Fossil fuel subsidies and national emissions reductions

Research from the Global Subsidies Initiative (GSI), of the International Institute for Sustainable Development (IISD) supported by the Nordic Council of Ministers (NCM), finds that, on average, across 20 countries the phased removal of fossil fuel subsidies between now and 2020 could lead to average national emissions reductions of 10.92% as against a business-as-usual (BAU) baseline. Emissions reductions would be increased to 18.15% if a small amount of the savings from subsidy reform (30%) are redirected toward renewables and energy efficiency. The cumulative savings from across the 20 countries by 2020 amounts to 2.8 gigatonnes (Gt) of CO2e. Furthermore, because this is a policy tool that saves government resources, it is estimated that for every tonne of CO2e removed through FFSR governments save an average of USD 92.83.


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