Phase out fossil-fuel subsidies
In an article in The Broker, IISD's Mark Halle discusses the benefits of fossil-fuel reform. He notes fossil-fuel subsidies cost the global economy an estimated US$500 billion annually.
But these heavy subsidies serve to discourage energy efficiency and defer investment in clean-energy systems.
If international governments were to stop subsidizing fossil fuels, global greenhouse gas (GHG) emissions could be cut by as much as 10 per cent by 2050.World leaders have already taken the first tentative steps in this direction. At present, there is a unique set of circumstances that can facilitate subsidy reform. The current economic crisis, high and volatile energy prices, increasing concern over energy security and continuing pressure to reduce GHG emissions all combine to make subsidy reform a relatively easy sell.The U.S. decided to include fossil-fuel subsidy reform on the agenda when it hosted the Group of Twenty (G-20) summit in Pittsburgh in September 2009. The result was a commitment from leaders to "rationalize and phase out over the medium term inefficient fossil-fuel subsidies that encourage wasteful consumption."
You might also be interested in
The Cost of Fossil Fuel Reliance
Government support for fossil fuels reached at least USD 1.5 trillion in 2023, new data shows.
Increased Support Needed to Achieve India's Clean Energy Goals
India is on track to achieve many of its 2030 clean energy goals but needs to step up government support measures to accelerate the deployment of offshore wind, electric vehicles, and green hydrogen, according to a new report.
Ending Export Credits for Oil and Gas: How OECD countries can end 2024 with a climate win
For a year now, Organisation of Petroleum Exporting Countries (OECD) governments have been negotiating an agreement that could put an end to oil and gas export finance. Following the acrimony in Baku, this would be a very real way for the OECD to show policy coherence, respond to calls from the poorest countries to stop subsidizing fossil fuels, and shift public finance to solutions.
Fossil Fuel Production, Renewable Energy, and Subsidy Reform in Nationally Determined Contributions 3.0
This policy brief provides an analysis of the critical benchmarks and recommendations necessary for aligning nationally determined contributions (NDCs) with the 1.5 °C target.