A Step-by-Step Guide for Governments to Prepare Fossil Fuel Subsidy Inventories

This guidance paper by the International Institute for Sustainable Development provides a five-step framework for governments to create transparent and comprehensive fossil fuel subsidy inventories to facilitate reform.

• The Coalition on Phasing Out Fossil Fuel Incentives Including Subsidies (COFFIS) was established at COP 28 in 2023, with 17 countries pledging to reform fossil fuel subsidies and provide transparency by publishing inventories.
• Global government spending on fossil fuel subsidies is at least USD 1 trillion annually, which negatively impacts government budgets, contributes to air pollution and climate change, and creates market distortions against cleaner energy sources.
• The guide recommends that subsidy inventories be led by agencies capable of initiating regulatory or legislative reform, utilize a whole-of-government approach, and be updated annually to track progress.
• Inventories should align with the subsidy definition found in Article 1.1 of the WTO ASCM, use internationally recognized terminology for categorization, and include estimates of fiscal costs, including foregone government revenue.
• The document outlines a five-step process for compiling an inventory: applying a whole-of-government approach, using a comprehensive scope and definition, selecting a measurement method, evaluating measures from socio-economic or environmental perspectives, and planning for regular, transparent publication.

APA

Wendenburg,, I. U. P. G. D. (2025). A Step-by-Step Guide for Governments to Prepare Fossil Fuel Subsidy Inventories. International Institute for Sustainable Development. https://www.iisd.org/publications/guide/governments-fossil-fuel-subsidy-inventories

Chicago

Wendenburg,, Indira Urazova,Angela Picciariello,Ivetta Gerasimchuk,Nhat Do,Anne. A Step-by-Step Guide for Governments to Prepare Fossil Fuel Subsidy Inventories. International Institute for Sustainable Development, 2025. https://www.iisd.org/publications/guide/governments-fossil-fuel-subsidy-inventories.

Wikipedia

{{cite report |last1=Wendenburg, |first1=Indira Urazova,Angela Picciariello,Ivetta Gerasimchuk,Nhat Do,Anne |title=A Step-by-Step Guide for Governments to Prepare Fossil Fuel Subsidy Inventories |publisher=International Institute for Sustainable Development |date=17 December 2025 |url=https://www.iisd.org/publications/guide/governments-fossil-fuel-subsidy-inventories |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{wendenburg2025stepbystep, author = {Wendenburg,, Indira Urazova,Angela Picciariello,Ivetta Gerasimchuk,Nhat Do,Anne}, title = {{A Step-by-Step Guide for Governments to Prepare Fossil Fuel Subsidy Inventories}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = dec, url = {https://www.iisd.org/publications/guide/governments-fossil-fuel-subsidy-inventories}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }