Cutting Emissions Through Fossil Fuel Subsidy Reform and Taxation

The report uses the GSI-IF model to analyze 32 countries, representing 77% of global CO2 emissions, to determine the impact of removing fossil fuel subsidies and implementing a 10% fossil energy tax by 2030. It finds that subsidy reform alone could save nearly USD 3 trillion and abate 5.4 GtCO2e, while combining reform with taxation and sustainable energy investment could increase average emission reductions from 6% to 11.8% by 2030.

• Fossil fuel subsidy reform (FFSR) alone can lead to a simple country average of approximately 6% in greenhouse gas (GHG) emission reductions by 2030 compared to business as usual, with some modeled countries achieving reductions as high as 35%.
• Combining FFSR with a 10% fossil energy tax and investing 30% of the resulting savings and revenues into energy efficiency and renewable energy would nearly double the average GHG emission reductions to 11.8% by 2030.
• By 2030, FFSR alone is projected to generate nearly USD 3 trillion in cumulative fiscal savings and abate 5.4 gigatonnes of carbon dioxide equivalent (GtCO2e), meaning governments save an average of USD 546.47 for every tonne of CO2e removed.

APA

Gass,, J. K. B. (2021). Cutting Emissions Through Fossil Fuel Subsidy Reform and Taxation. International Institute for Sustainable Development. https://www.iisd.org/publications/cutting-emissions-fossil-fuel-subsidies-taxation

Chicago

Gass,, Jonas Kuehl,Andrea Bassi,Philip. Cutting Emissions Through Fossil Fuel Subsidy Reform and Taxation. International Institute for Sustainable Development, 2021. https://www.iisd.org/publications/cutting-emissions-fossil-fuel-subsidies-taxation.

Wikipedia

{{cite report |last1=Gass, |first1=Jonas Kuehl,Andrea Bassi,Philip |title=Cutting Emissions Through Fossil Fuel Subsidy Reform and Taxation |publisher=International Institute for Sustainable Development |date=4 July 2021 |url=https://www.iisd.org/publications/cutting-emissions-fossil-fuel-subsidies-taxation |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{gass2021cutting, author = {Gass,, Jonas Kuehl,Andrea Bassi,Philip}, title = {{Cutting Emissions Through Fossil Fuel Subsidy Reform and Taxation}}, institution = {International Institute for Sustainable Development}, year = {2021}, month = jul, url = {https://www.iisd.org/publications/cutting-emissions-fossil-fuel-subsidies-taxation}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }