A G20 pathway towards oil and gas phase-out

This policy brief by the Institute for Economic Justice argues that G20 countries must establish a coordinated, finance-backed roadmap to phase out oil and gas. While G20 nations have expanded renewable capacity, they continue to provide massive subsidies to fossil fuels, creating economic and political barriers to transition. The document highlights the specific role of South Africa's 2025 G20 presidency in leading equitable discussions on subsidy reform and financing for the Global South.

• G20 countries are the primary drivers of global climate change, accounting for approximately 75% of global greenhouse gas emissions, yet they have failed to secure clear, binding commitments to phase out oil and gas.
• Phasing out oil and gas is more complex than phasing out coal because oil and gas are deeply integrated into critical industrial and transportation sectors where alternatives are currently costly or underdeveloped.
• Substantial financial support continues to prop up the fossil fuel industry; G20 nations provided US$1.5 trillion in subsidies in 2023, and in 2022, $440 billion of the $1.4 trillion in fossil fuel support was directed specifically toward new production.
• There is a significant divide within the G20 regarding phase-out timelines: oil and gas exporting nations like Russia and Saudi Arabia oppose aggressive timelines, while some emerging economies (EMDEs) prefer a 'phase down' approach to protect energy security and industrial growth.
• Emerging Markets and Developing Economies (EMDEs) face an overwhelming financial gap, with climate investment needing to increase more than fourfold to $2.4 trillion per year by 2030 to meet Paris Agreement goals.
• South Africa's 2025 G20 presidency is viewed as a strategic opportunity to lead on subsidy reform and just transition financing, given its own struggle with coal dependency and a reliance on 138,000 barrels per day of imported oil in 2023.
• The document recommends that the G20 establish measurable targets for 2030, 2040, and 2050, reform international financing institutions, and create a shared taxonomy for a 'just energy transition' to avoid fragmented efforts.

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} }