iej-g20factsheet5-fossil-fuel-phaseout-web-1-1-c0f0deff67ad7281.pdf

This fact sheet by the Institute for Economic Justice examines the challenges and progress of phasing out fossil fuels within G20 nations. It highlights the economic and social dependencies that hinder the transition, the failure of G20 countries to meet subsidy reduction promises, and the specific goals of South Africa's 2025 G20 presidency to champion a people-centered, just energy transition.

• Fossil fuels remain deeply embedded in the global economy, with oil powering 90% of global transport and coal and gas remaining critical for food production, industry, and electricity.
• The transition to renewable energy faces significant social and economic hurdles, including the risk of unemployment for workers in fossil fuel-dependent regions and fiscal instability for nations reliant on fossil fuel revenues. For example, Russia's federal revenue is approximately 30% dependent on oil and gas earnings.
• South Africa is heavily dependent on coal, which accounts for 86% of its electricity generation and employs 91,000 workers, creating a high risk of job loss without compensatory measures.
• Despite a 2009 G20 agreement to phase out fossil fuel subsidies, spending has increased. In 2023, G7 countries spent $282 billion and developing and emerging countries spent $620 billion on these subsidies.
• Fossil fuel subsidies are often regressive; an IMF study of 32 developing countries found that 80% of petrol subsidies benefit the top 40% of households, with the wealthiest 10% benefiting six times more than the poorest 20%.
• During its 2025 G20 presidency, South Africa intends to promote a 'people-centred approach' to energy transition. This includes creating green industrial hubs, reskilling workers, and exploring clean hydrogen and nuclear energy as alternatives.
• Infrastructure lock-in persists as countries like the United States, Japan, and China continue to finance fossil fuel power projects domestically and abroad, despite clean energy commitments. In 2023, public money totaling $343 billion was used to support natural gas consumers and producers.

APA

Institute for Economic Justice (n.d.). iej-g20factsheet5-fossil-fuel-phaseout-web-1-1-c0f0deff67ad7281.pdf. https://iej.org.za/wp-content/uploads/2025/08/IEJ-G20factsheet5-Fossil-Fuel-Phaseout-web-1-1.pdf

Chicago

Institute for Economic Justice. iej-g20factsheet5-fossil-fuel-phaseout-web-1-1-c0f0deff67ad7281.pdf. n.d. https://iej.org.za/wp-content/uploads/2025/08/IEJ-G20factsheet5-Fossil-Fuel-Phaseout-web-1-1.pdf.

Wikipedia

{{cite report |author=Institute for Economic Justice |title=iej-g20factsheet5-fossil-fuel-phaseout-web-1-1-c0f0deff67ad7281.pdf |url=https://iej.org.za/wp-content/uploads/2025/08/IEJ-G20factsheet5-Fossil-Fuel-Phaseout-web-1-1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{instituteforeconomicjusticendiejg20factsheet5fossilfuelphaseoutweb11c0f0deff67ad7281pdf, author = {{Institute for Economic Justice}}, title = {{iej-g20factsheet5-fossil-fuel-phaseout-web-1-1-c0f0deff67ad7281.pdf}}, institution = {Institute for Economic Justice}, url = {https://iej.org.za/wp-content/uploads/2025/08/IEJ-G20factsheet5-Fossil-Fuel-Phaseout-web-1-1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }