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




The Philippines removed various fossil fuel subsidies between 1996 and 2001 and experienced fuel price increases. As a result, it has been able to invest more in safety nets and renewable sources of energy, and now taxes fuels. Since reform, the Philippines has experienced a decline in the consumption of oil products, stabilized emissions per kWh generated, increased energy efficiency and reduced the energy intensity of the overall fuel mix. This is likely due to a mixture of reasons including subsidy reform, the downturn from the Asian Financial crisis and higher oil prices being passed through to consumers, as well as active government policy to invest in renewables.


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