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

The document outlines a five-step process for governments to develop fossil fuel subsidy inventories, emphasizing a whole-of-government approach and the use of international definitions. It highlights that global spending on fossil fuel subsidies exceeds USD 1 trillion annually, which strains budgets and hinders the transition to cleaner energy. The guide is specifically designed to support the 17 member countries of the Coalition on Phasing Out Fossil Fuel Incentives Including Subsidies (COFFIS) in meeting their commitment to publish subsidy inventories.

• Global government spending on fossil fuel subsidies is at least USD 1 trillion per year, which distorts markets against cleaner energy sources and contributes to air pollution and climate change.
• The guide recommends a five-step process for compiling inventories: applying a whole-of-government approach, using a comprehensive subsidy scope and definition, choosing a measurement method, evaluating measures from socio-economic or environmental perspectives, and planning for regular transparent updates.
• Inventories should be led by agencies capable of initiating legislative or regulatory reform and should align with the subsidy definition found in Article 1.1 of the WTO ASCM.
• To ensure progress and data quality, inventories should be updated annually and must include estimates of fiscal costs, including foregone government revenue.
• The Coalition on Phasing Out Fossil Fuel Incentives Including Subsidies (COFFIS), launched at COP 28 in 2023, consists of 17 countries committed to fossil fuel subsidy reform and the publication of subsidy inventories.

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} }