A Path to a Cleaner Future

The document analyzes the systemic difficulties G20 nations face in transitioning from fossil fuels, citing economic dependencies, infrastructure lock-in, and social risks to workers. It notes a failure to meet 2009 G20 commitments to phase out subsidies, with G7 and developing nations spending hundreds of billions in 2023. The text emphasizes South Africa's 2025 G20 presidency as an opportunity to champion a people-centered approach involving green industrial hubs and socio-economic safeguards for coal-dependent regions.

• Fossil fuels remain deeply embedded in the global economy, with oil powering 90% of global transport and coal and gas remaining essential for electricity, industry, and food production.
• South Africa is heavily dependent on coal, which accounts for 86% of its electricity generation and employs 91,000 workers, creating significant risks of job loss during a transition.
• G20 nations have failed to uphold the 2009 Pittsburgh Summit agreement to phase out fossil fuel subsidies; in 2023, G7 countries spent $282 billion and developing and emerging countries spent $620 billion on such 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 richest 10% benefiting six times more than the poorest 20%.
• Infrastructure lock-in persists as countries like the United States, Japan, and China continue to finance fossil fuel power projects domestically and internationally, with $343 billion of public money used to support natural gas producers and consumers in 2023.
• During its 2025 G20 presidency, South Africa intends to promote a people-centered transition by creating green industrial hubs, upskilling workers, and utilizing clean hydrogen and nuclear energy as alternatives.

APA

Institute for Economic Justice (2025). A Path to a Cleaner Future. https://iej.org.za/wp-content/uploads/2025/08/IEJ-G20factsheet5-Fossil-Fuel-Phaseout-web-1-1.pdf

Chicago

Institute for Economic Justice. A Path to a Cleaner Future. 2025. 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=A Path to a Cleaner Future |date=August 2025 |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{instituteforeconomicjustice2025path, author = {{Institute for Economic Justice}}, title = {{A Path to a Cleaner Future}}, institution = {Institute for Economic Justice}, year = {2025}, month = aug, 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} }