This working paper explains how different production subsidies currently unlock “zombie energy” from fossil fuel deposits that would not be commercially viable to produce without government support.

Cooperative, non-market and country-led—that was the order of the day when it came to fossil fuel subsidy reform (FFSR) at the UN Climate Change Conference (UNFCCC) from November 7–19 in Marrakech, Morocco. Across the two weeks, the conference attracted some 22,500 participants, and there were several side events held in English and French on the issue of FFSR (a full listing is available here). Events and discussions covering FFSR focused on early action and implementation of the phase-out of fossil fuel subsidies given the current window of opportunity afforded by low oil prices. They addressed lowering the total value of fossil fuel subsidies to consumers, reducing the cost to governments of reform, as well as efforts to phase out upstream subsidies to fossil fuel producers.

If we aim to reduce global emissions in order to limit global warming to less than 2°C above pre-industrial levels, then the energy sector is of paramount importance. Many countries and regions are making this switch: from subsidising fossil fuels and towards investing in sustainable energy. This report describes how Ethiopia, Morocco, Peru and the Philippines have reformed their subsidies. It also describes how countries including Denmark, Finland, Norway and Sweden have introduced innovative policy instruments to encourage switching towards  renewable and sustainable energy.

A new report from IISD's Global Subsidies Initiative (GSI), entitled Gender and Fossil Fuel Subsidy Reform, suggests that the reform of fossil fuel subsidies should focus assistance towards women in poverty.

This report explores current knowledge on energy subsidy reforms and gender through a review of existing literature. First, it sets out the global context of energy subsidies, energy access and gender empowerment. It then reviews literature on gender, energy access, fossil fuel subsidies and mitigation measures related to subsidy reform, such as cash transfers. Finally, it provides an overview of these issues across three focus countries: Bangladesh, India and Nigeria, as well as case studies on Peru, Mexico and Morocco.

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.

25 May—Bonn, Germany—Over the last two weeks, countries met in Bonn to discuss the implementation of the 2015 Paris Agreement on Climate Change. Fiscal instruments—such as fossil fuel subsidy reform, fuel duty and carbon taxation—were raised throughout the meeting, which was supported by the Global Subsidies Initiative of IISD and the Friends of Fossil Fuel Subsidy Reform (Friends of FFSR). 

16 February 2016—Geneva—The Global Subsidies Initiative (GSI) of the International Institute for Sustainable Development (IISD) hosted a webinar on the climate change impacts of USD 500 billion of government subsidies to fossil fuels. The webinar was chaired by Peter Wooders, Group Director, Energy, IISD, who outlined the importance of fiscal instruments and mitigation efforts in light of the UNFCCC agreement and the ambitious efforts of the Friends of Fossil Fuel Subsidy Reform in promoting an international communiqué on the issue.