The G20 committed in 2009 to phase out and rationalise fossil fuel subsidies in the medium-term. Yet subsidies exceeded US$1 trillion globally for the first time in 2022, following the global energy price crisis. Reforming public support for fossil fuels is crucial to level the playing field for renewable energy and create sustainable energy systems that will protect consumers from volatile fossil fuel prices. This frees up funds for other domestic priorities and climate mitigation and adaptation efforts. Well- planned reform can also support energy access for the poor and improve the quality of energy systems. How can the G20 reinvigorate momentum and drive the full implementation of subsidy reform commitments? This Policy Brief discusses the challenges and opportunities for advancing progress on fossil fuel subsidy reform, including specific challenges in the Global South. It draws on lessons from G20 members with high poverty rates and massive energy access needs.
Register for Updates
Would you like to receive updates on the Global Solutions Initiative, upcoming events, G7 and G20-related developments and the future of multilateralism? Then subscribe here!
1 You hereby agree that the personal data provided may be used for the purpose of updates on the Global Solutions Initiative by the Global Solutions Initiative Foundation gemeinnützige GmbH. Your consent is revocable at any time (by e-mail to [email protected] or to the contact data given in the imprint). The update is sent in accordance with the privacy policy and to advertise the Global Solutions Initiative’s own products and services.