A G20 pathway towards oil and gas phase-out

The policy brief examines the barriers to phasing out oil and gas within G20 nations, noting that while renewable capacity has grown, fossil fuel subsidies and deep industrial integration persist. It advocates for measurable phase-out targets, subsidy reform, and increased concessional financing for the Global South to ensure a just energy transition.

• G20 countries are the primary drivers of global climate change, accounting for approximately 75% of global greenhouse gas emissions, yet they lack a coordinated momentum for phasing out oil and gas despite accounting for nearly 90% of global renewable power capacity in 2023.
• Phasing out oil and gas is more complex than coal because these fuels are deeply integrated into the industry and transportation sectors, where alternatives are currently underdeveloped or expensive.
• Significant financial support for fossil fuels continues; G20 nations provided US$1.5 trillion in subsidies in 2023, and in 2022, record support reached $1.4 trillion, with $440 billion specifically for new production.
• There is a divide in G20 positions: Saudi Arabia and Russia oppose aggressive phase-out timelines due to economic reliance on exports, while other emerging economies like India, Brazil, Indonesia, and South Africa advocate for a 'phase down' and a just transition supported by finance and technology transfer.
• South Africa's 2025 G20 presidency is viewed as a strategic opportunity to lead discussions on subsidy reform and phase-out timelines, leveraging its own experience with coal dependency and its reliance on imported oil, which totaled 138,000 barrels per day in 2023.
• The Global South faces severe financial barriers to decarbonisation, requiring $1.7 trillion annually, yet only 15% of clean energy investments currently reach the regions with the highest need.
• Multilateral development banks (MDBs) continue to fund fossil fuels, with $3 billion invested in 2020, of which gas represented 75% of those investments.

APA

Ajith, M. (2025). A G20 pathway towards oil and gas phase-out. Institute for Economic Justice. https://iej.org.za/wp-content/uploads/2025/09/IEJ-policy-brief-G20-June2025-2-1.pdf

Chicago

Ajith, Meenakshi. A G20 pathway towards oil and gas phase-out. Institute for Economic Justice, 2025. https://iej.org.za/wp-content/uploads/2025/09/IEJ-policy-brief-G20-June2025-2-1.pdf.

Wikipedia

{{cite report |last1=Ajith |first1=Meenakshi |title=A G20 pathway towards oil and gas phase-out |publisher=Institute for Economic Justice |date=July 2025 |url=https://iej.org.za/wp-content/uploads/2025/09/IEJ-policy-brief-G20-June2025-2-1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ajith2025g20, author = {Ajith, Meenakshi}, title = {{A G20 pathway towards oil and gas phase-out}}, institution = {Institute for Economic Justice}, year = {2025}, month = jul, url = {https://iej.org.za/wp-content/uploads/2025/09/IEJ-policy-brief-G20-June2025-2-1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }