New Coalition Formed at COP 28 to Tackle Fossil Fuel Subsidy Reform a Promising Sign

The IISD welcomes the launch of a new coalition for fossil fuel subsidy (FFS) reform at COP 28, which aims to increase transparency, evaluate barriers to reform, and develop national phase-out strategies. However, the IISD warns that public financial support for fossil fuels reached a record USD 1.7 trillion in 2022 and notes that only 16 countries have included FFS reform in their current nationally determined contributions (NDCs). To ensure success, the IISD recommends establishing a 2025 deadline for FFS removal in OECD countries and 2030 for non-OECD countries, reinvesting savings into just transition programs, and avoiding narrow definitions of subsidies that have historically delayed action.

• Public financial support for fossil fuels, including subsidies, state-owned enterprise investments, and public financial institution lending, exceeded USD 1.7 trillion globally in 2022.
• Despite various international commitments under the G7, G20, APEC, and the Sustainable Development Goals, only 16 countries have committed to reforming fossil fuel subsidies in their current nationally determined contributions (NDCs).
• The new coalition led by the Netherlands commits to improving transparency through a comprehensive methodology, assessing international agreements that hinder reform, and creating national strategies to phase out fossil fuel subsidies.
• The IISD proposes specific deadlines for the elimination of fossil fuel subsidies: 2025 for OECD member countries and 2030 for non-OECD member countries.
• The IISD argues that the coalition should prioritize the removal of subsidies for oil and gas exploration and production, as scientific consensus indicates no room for new developments in a Paris-aligned world.

APA

International Institute for Sustainable Development (2023). New Coalition Formed at COP 28 to Tackle Fossil Fuel Subsidy Reform a Promising Sign. https://www.iisd.org/articles/statement/cop-28-new-coalition-fossil-fuel-subsidy-reform-promising-sign

Chicago

International Institute for Sustainable Development. New Coalition Formed at COP 28 to Tackle Fossil Fuel Subsidy Reform a Promising Sign. 2023. https://www.iisd.org/articles/statement/cop-28-new-coalition-fossil-fuel-subsidy-reform-promising-sign.

Wikipedia

{{cite press release |author=International Institute for Sustainable Development |title=New Coalition Formed at COP 28 to Tackle Fossil Fuel Subsidy Reform a Promising Sign |date=8 December 2023 |url=https://www.iisd.org/articles/statement/cop-28-new-coalition-fossil-fuel-subsidy-reform-promising-sign |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{internationalinstituteforsustainabledevelopment2023new, author = {{International Institute for Sustainable Development}}, title = {{New Coalition Formed at COP 28 to Tackle Fossil Fuel Subsidy Reform a Promising Sign}}, publisher = {International Institute for Sustainable Development}, year = {2023}, month = dec, url = {https://www.iisd.org/articles/statement/cop-28-new-coalition-fossil-fuel-subsidy-reform-promising-sign}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }