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




Subsidies rose in Morocco following the suspension of a mechanism to index domestic prices of food and fuel to international prices – and in 2013 a major subsidy reform program was launched to address the high cost of the subsidies. The reforms began with a reduction in gasoline and diesel subsidies. To manage the impacts of reforms, fuels that place a disproportionate burden on the poorest were originally excluded. The reduction in subsidies to fossil fuels has been coupled with a commitment to increasing the role of renewable energy, particularly solar energy. The experience of Morocco shows the importance a structured approach to subsidy reform and the need for high-level political engagement with reforms.


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