G20 Energy Ministers meet on the 29th of June in Beijing to discuss the major energy policy challenges facing the group. A key area of discussion is fossil fuel subsidy reform.
This study examines the role that policy crediting might play in increasing the mitigation impact of energy pricing reform and carbon pricing policies (pricing reform).
20-21 April—Beijing—Coal remains central to the energy sector in China despite the impact on air pollution and greenhouse gas emissions. Recognizing the problems associated with coal use, China has embarked on a programme to gradually reduce the role of coal and develop cleaner forms of energy.
A key first step to breaking the hold of coal on the energy sector is to stop providing subsidies to the industry.
The United Kingdom may soon be entering a new phase of development of nuclear power generation.
A review of planned subsidies by the Global Subsidies Initiative to the proposed Hinkley Point C nuclear project finds billions of pounds in committed subsidies and the government on the hook for billions more if the project fails to deliver.
This report presents the first detailed estimate of subsidies to coal production in China, identifying an estimated USD 5.8 billion in in government support in 2013.
Kerosene subsidies are expensive: estimated to be more than US$ 4 billion in West Africa and more than US$ 5 billion in India. What are governments—often with highly limited resources—achieving by spending all this money? And with an increasing number of countries committing to reform subsidies, what will it mean for energy access if these policies are removed?
The cost to society of coal use includes the financial cost of providing subsidies to the coal industry in addition to the cost of externalities.
This report explores the cost of coal in terms of subsidies and externalities and discusses the extent to which coal subsidies act as a barrier to the development of renewable energy. It finds that China is supporting the coal industry through the provision of billions of dollars’ worth of subsidies to consumers and producers. In addition to the financial cost, these subsidies increase the consumption of coal, producing externalities including air pollution and greenhouse gas emissions.
Subsidies for the consumption of fossil fuels were estimated at US$550 billion in 2013, according to the International Energy Agency.
This report by IISD and the Nordic Council of Ministers modeled the impact of removing fossil fuel subsidies in 20 countries between 2015 and 2020. The results show that this alone would reduce national emissions, against business as usual, by an average of 11 per cent. By taking 30 per cent of subsidy savings, and investing in renewable energy and energy efficiency, national emissions are reduced further to an average of 18 per cent by 2020. The report also includes case studies of reform in the Philippines, Morocco and Jordan.
