Tackling Fossil Fuel Subsidies and Climate Change

Levelling the energy playing field

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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



International efforts

This section describes three different country experiences with FFSR, viewing the reforms from an emissions-reduction perspective. The GSI and others usually focus on evaluating reforms from a fiscal policy or social impact assessment perspective – the most common motivation for countries reforming their subsidies. Rarely are emissions reductions considered, nor how to maximize a shift toward low-carbon energy measures alongside the process of reform. The GSI recommends a threepillared approach to FFSR as outlined below: getting energy prices right, building support for reform and managing the impacts of reform (Beaton et al., 2013). This report makes the case to governments to also evaluate investment in sustainable energy, when undergoing energy sector reforms.


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