COFFIS | Coalition on Phasing Out Fossil Fuel Incentives Including Subsidies
Comprised of 13 active members, COFFIS is a forward-leaning coalition of countries working to remove fossil fuel subsidies through direct domestic implementation and collective action.
All United Nations member governments have pledged to phase out inefficient fossil fuel subsidies under the Sustainable Development Goals and United Nations Framework Convention on Climate Change COP 26–28 outcomes. After decades of efforts to reform fossil fuel subsidies, global levels have remained astronomically high. In 2022, global fossil fuel subsidies reached a record USD 1.5 trillion. This not only delays the transition to other sources of energy but represents an enormous cost to taxpayers. Fossil fuel subsidies are regressive taxes—the large majority of funds go to support the richest parts of the population. Addressing energy poverty can be more effectively remedied by other forms of targeted, more economic support. COFFIS members intend to lead by example by removing financial incentives to fossil fuel production and consumption and promoting a level playing field for clean energy.
Reforming subsidies is a challenge, as energy subsidies are often seen as important for national energy security and for keeping down the cost of living for households. Fiscal policy transitions need to be carefully managed, taking into account alternative forms of support for lower-income households, maintaining the competitiveness of key industries, and other valid social concerns. Transparency, social dialogue, and alternative solutions that are more targeted and cost less are key to effective phase-out plans.
A significant part of global fossil fuel subsidies are tied up in the tax-free status of international aviation and shipping fuel. This puts alternative forms of transport (such as trains where such options exist) at a disadvantage and slows down the adoption of sustainable fuel alternatives. These global industries require both domestic and global solutions, which COFFIS members can work together to achieve.
The coalition was launched at COP 28 by a Ministerial Statement. Member countries include Antigua and Barbuda, Austria, Belgium, Canada, Costa Rica, Denmark, Finland, France, Ireland, Luxembourg, Spain, the Netherlands, and Switzerland.
Fossil fuel subsidies discourage the climate and energy transition and come at substantial costs for our societies.