About

Our Mission

COFFIS members commit to the following actions:

Transparency

Transparency regarding fossil fuel subsidies is essential to implementing the coalition’s phase-out commitments. Members commit to providing transparency before or by the 29th UN Climate Change Conference (COP 29) on our own fossil fuel subsidies by publishing an inventory. This inventory goes beyond direct subsidies to include indirect subsidies (such as expenditure schemes, discounts, and incomplete pricing). Existing definitions provide a starting point. The objective is to jointly move toward a comprehensive methodological framework.

Developing a comprehensive methodological framework

Although no comprehensive and common standard exists, several international organizations, such as the International Monetary Fund (IMF), Organisation for Economic Co-operation and Development (OECD), World Trade Organization (WTO), World Bank, International Renewable Energy Agency (IRENA), International Energy Agency (IEA), IMO, and ICAO, are already involved in relevant work that can be drawn upon. We encourage further cooperation between all relevant actors with the aim of moving toward a more comprehensive methodological framework, identifying the scope of fossil fuel subsidies to be measured, and taking into account external costs. This cooperation will enable countries to be fully transparent regarding their fossil fuel subsidies, and it will allow for comparability. The framework should consider direct and indirect subsidies, including incomplete pricing and perverse incentives that stimulate the consumption of fossil energy. The first results of this joint work can be presented at COP 29. 

Identifying international barriers (e.g., international agreements)

Members will work together to identify international barriers preventing the phase-out of fossil fuel subsidies. These international barriers can cause the continued underpricing of emissions in certain sectors, undermining the Paris Agreement goals. Particular attention should be given to international aviation and maritime transport. These sectors are complex to regulate due to various bilateral and multilateral agreements or barriers in international trade. We should also identify the opportunities that allow for the development of international pricing mechanisms via the IMO and ICAO.

Dialogue on the national phase-out of fossil fuel subsidies

Signatories will set up an international dialogue to share lessons learned, develop national phase-out strategies, and strive for joint action to minimize carbon leakage and maintain a level playing field. This international dialogue can be held yearly at COP meetings. Phasing out fossil fuel subsidies is a vital element for countries to reduce emissions in line with the long-term goals of the Paris Agreement. Signatories commit to developing national strategies within a clear timeline. Reducing emissions should be the main focus when forming a national phase-out strategy. Therefore, it is essential to not only look at subsidies but also consider the overall picture: the gap in pricing of external costs of emissions stemming from fossil fuels. National phase-out strategies should focus on closing this gap. Such strategies could also consider (in)efficiency, address the role of energy poverty, and ensure a just transition. We ask international organizations, such as IMF, OECD, WTO, World Bank, IRENA, IEA, IMO, and ICAO, to develop guidance that can be used by all countries developing a national phase-out strategy.