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

This report evaluates the capacity of the World Trade Organization (WTO) to address fossil fuel subsidies and support the clean energy transition, arguing that current rules are insufficient because they focus on trade implications rather than environmental impacts.

• Fossil fuel subsidies, estimated at USD 478 billion in 2019, create significant negative impacts including straining public finances, contributing to climate change, hindering renewable energy adoption, and causing local air pollution and public health issues.
• Current WTO subsidy rules are not 'fit for purpose' for addressing fossil fuel subsidies because they focus exclusively on trade effects and ignore environmental concerns. Furthermore, fossil fuel subsidies have generally not been challenged through the WTO's dispute settlement mechanism, unlike renewable energy supports, due to strategic, political, and legal-evidentiary obstacles.
• To better support fossil fuel subsidy reform and the clean energy transition, the report recommends that WTO members increase transparency regarding public fossil fuel support, improve the enforcement of current subsidy rules, and initiate informal dialogues to create new, more stringent rules.

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} }