Santa Marta Pre-Conference | Fossil Fuel Subsidy Reform Session

Fossil fuel subsidies are the biggest form of public financial support for fossil fuels, reaching more than USD 921 billion in 2024. These subsidies place enormous pressure on public budgets and are rapidly increasing again as a response to the current energy crisis.

Blanket subsidies are highly inefficient, often providing disproportionate benefits to high-income households while weakening incentives to reduce fossil fuel use. As countries once again face high energy costs, governments should consider alternative support policies— such as direct support for vulnerable households and industry. Targeting support to people not fossil fuels is more financially sustainable, provides assistance to those who need it most, and retains incentives for building national energy mixes that are less dependent on volatile fossil fuel markets.

In Santa Marta, government commitments to reforming fossil fuel subsidies and other incentives can signal national intentions to the energy sector transition in a way that strengthens energy security through diverse, affordable and localized energy mixes. Initiatives like COFFIS – the coalition of countries committed to subsidy reform, offer a platform for peer learning and technical expertise.

This session, the first under the Defunding Fossils, Funding Transition workstream, will explore best practices on fossil fuel subsidy reform, increasing accountability, and how countries can use fossil fuel subsidy reform as strategy for energy security.

Agenda

Panel Discussion

Vance Culbert, Senior Policy Advisor & COFFIS Secretariat Manager, IISD

Paolo Destilo, Climate Justice Campaigner, COFFIS Observatory

Amra van den Hoven, COFFIS Chair, Ministry of Climate and Green Growth, Netherlands

Jaime de Bourbon de Parme, Director of Environment Directorate, OECD

Paula Osorio, Associate, Energy Diplomacy, Transforma

Best Practices on Reform Policies Workshop

Moderator: Vance Culbert, Senior Policy Advisor & COFFIS Secretariat Manager, IISD

Increasing Fossil Fuel Subsidy Reform Accountability Workshop

Moderator: Bronwen Tucker, Global Public Finance Campaign Co-Manager, Oil Change International

Strengthening Energy Security through Fossil Fuel Subsidy Reform Workshop

Moderator: Lahra Liberti, Head of Unit, Natural Resources for Development, OECD

Summary Session