How the UNFCCC Can Tackle Fossil Fuel Subsidies at COP 28 and Beyond

This research paper by the International Institute for Sustainable Development analyzes the role of the UNFCCC in addressing fossil fuel subsidies, specifically focusing on opportunities at COP 28 and beyond. It highlights the gap between government rhetoric and the record USD 1.3 trillion in subsidies provided in 2022, arguing that the UNFCCC can strengthen global commitments through clear deadlines, improved transparency in Nationally Determined Contributions (NDCs), and integration into climate finance discussions.

• Global fossil fuel subsidies reached a record USD 1.3 trillion in 2022, contradicting the goal of Article 2.1(c) of the 2015 Paris Agreement to align finance flows with low greenhouse gas emissions and climate-resilient development.
• The IPCC indicates that removing fossil fuel subsidies could reduce global CO2 emissions by 1–4% and total greenhouse gas emissions by up to 10% by 2030, while also improving public revenue and macroeconomic performance.
• While COP 26 and COP 27 called for the phase-out of "inefficient" fossil fuel subsidies, the commitment is considered flawed because it lacks a clear deadline, uses an undefined term ("inefficient"), and lacks a follow-up process to track progress.
• National commitments in NDCs are limited: only 29 of 198 parties have referenced fossil fuel subsidies, and only 16 have included an actual commitment to reform. Notably, no G7 or G20 countries are among those 16, despite G7 pledges to phase out subsidies by 2025.
• The author suggests that COP 28 could strengthen global commitments by setting deadlines (e.g., 2025 for developed and 2030 for developing countries), clarifying the term "inefficient," and expanding the scope to include all public financial flows, including state-owned enterprise investments.
• There are opportunities to integrate subsidy reform into climate finance discussions, such as the "new collective quantified goal on climate finance" (NCQG). The Association of Latin America and the Caribbean has proposed "net climate finance," which would subtract finance provided to high-emissions activities, including subsidies, from the total climate finance value.

APA

van Asselt, H., & Skovgaard, J. (2023). How the UNFCCC Can Tackle Fossil Fuel Subsidies at COP 28 and Beyond. International Institute for Sustainable Development. https://www.iisd.org/articles/insight/unfccc-tackle-fossil-fuel-subsidies-cop-28

Chicago

van Asselt, Harro, and Jakob Skovgaard. How the UNFCCC Can Tackle Fossil Fuel Subsidies at COP 28 and Beyond. International Institute for Sustainable Development, 2023. https://www.iisd.org/articles/insight/unfccc-tackle-fossil-fuel-subsidies-cop-28.

Wikipedia

{{cite report |last1=van Asselt |first1=Harro |last2=Skovgaard |first2=Jakob |title=How the UNFCCC Can Tackle Fossil Fuel Subsidies at COP 28 and Beyond |publisher=International Institute for Sustainable Development |date=27 November 2023 |url=https://www.iisd.org/articles/insight/unfccc-tackle-fossil-fuel-subsidies-cop-28 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{vanasselt2023how, author = {van Asselt, Harro and Skovgaard, Jakob}, title = {{How the UNFCCC Can Tackle Fossil Fuel Subsidies at COP 28 and Beyond}}, institution = {International Institute for Sustainable Development}, year = {2023}, month = nov, url = {https://www.iisd.org/articles/insight/unfccc-tackle-fossil-fuel-subsidies-cop-28}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }