Fit for Purpose? Toward trade rules that support fossil fuel subsidy reform and the clean energy transition

The report argues that current WTO subsidy rules are insufficient for addressing fossil fuel subsidies because they focus on trade implications rather than environmental concerns. It suggests that the WTO can better support subsidy reform by increasing transparency, improving the enforcement of existing rules, and negotiating new, stronger regulations.

• Current WTO subsidy rules are inadequate for environmental goals because they focus solely on trade effects, and even these effects are not fully disciplined.
• Despite the WTO's position as the only global body with binding subsidy rules, fossil fuel subsidies have generally not been challenged through its dispute settlement mechanism, unlike renewable energy supports.
• The report identifies three primary actions for WTO members to support fossil fuel subsidy reform: increasing transparency, improving enforcement of current rules, and initiating dialogues to create new, stronger rules.
• Fossil fuel subsidies were estimated at USD 478 billion in 2019, contributing to climate change, public health issues via air pollution, and slowing the adoption of renewable energy.

APA

Moerenhout,, H. V. A. (2020). Fit for Purpose? Toward trade rules that support fossil fuel subsidy reform and the clean energy transition. International Institute for Sustainable Development. https://www.iisd.org/publications/fit-purpose-trade-fossil-fuel-subsidy-reform

Chicago

Moerenhout,, Harro van Asselt,Tom. Fit for Purpose? Toward trade rules that support fossil fuel subsidy reform and the clean energy transition. International Institute for Sustainable Development, 2020. https://www.iisd.org/publications/fit-purpose-trade-fossil-fuel-subsidy-reform.

Wikipedia

{{cite report |last1=Moerenhout, |first1=Harro van Asselt,Tom |title=Fit for Purpose? Toward trade rules that support fossil fuel subsidy reform and the clean energy transition |publisher=International Institute for Sustainable Development |date=30 November 2020 |url=https://www.iisd.org/publications/fit-purpose-trade-fossil-fuel-subsidy-reform |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{moerenhout2020fit, author = {Moerenhout,, Harro van Asselt,Tom}, title = {{Fit for Purpose? Toward trade rules that support fossil fuel subsidy reform and the clean energy transition}}, institution = {International Institute for Sustainable Development}, year = {2020}, month = nov, url = {https://www.iisd.org/publications/fit-purpose-trade-fossil-fuel-subsidy-reform}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }