Achieving a Fossil-Free Recovery

This fact sheet outlines a blueprint for a fossil-free recovery, arguing that G20 governments should stop funding fossil fuel production and instead use revenues from subsidy reforms and taxes—potentially USD 553 billion annually—to fund clean energy, energy efficiency, and universal energy access. It emphasizes the need for private investment in clean electricity and a just transition involving workers, employers, and governments.

• G20 governments have allocated significant public funds to fossil fuels as part of COVID-19 recovery, totaling at least USD 295 billion as of June 2021. This is in addition to an annual expenditure of USD 584 billion on fossil fuels outside of recovery spending.
• Global fossil fuel subsidy reform (FFSR) and the implementation of taxes—specifically USD 12.5 ct/litre on gasoline and diesel and USD 5 per tonne of coal—could generate at least USD 553 billion annually. These funds could support post-pandemic recovery and the transition to net-zero.
• The potential annual revenue of USD 553 billion from FFSR and taxation significantly exceeds the yearly investment requirements for several key energy transition goals: it covers nearly 90% of solar photovoltaic and wind energy needs, almost 60% of building energy efficiency needs, over four times the need for electric vehicle charging infrastructure, and over 12 times the investment required for universal energy access.
• To achieve a fossil-free recovery, governments should incentivize private investment in clean electricity, as 70% of the necessary investment must come from private sources. Recommended actions include using subsidies for renewables, mandating public finance institutions to manage country-specific risks, and transitioning state-owned enterprises away from fossil fuels.
• The transition to clean energy must follow a 'just transition' approach to ensure no one is left behind, utilizing dialogue between critical stakeholders including workers, employers, and governments.

APA

International Institute for Sustainable Development (n.d.). Achieving a Fossil-Free Recovery. https://www.iisd.org/system/files/2021-07/achieving-ff-recovery-V3_0.pdf

Chicago

International Institute for Sustainable Development. Achieving a Fossil-Free Recovery. n.d. https://www.iisd.org/system/files/2021-07/achieving-ff-recovery-V3_0.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Achieving a Fossil-Free Recovery |url=https://www.iisd.org/system/files/2021-07/achieving-ff-recovery-V3_0.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopmentndachieving, author = {{International Institute for Sustainable Development}}, title = {{Achieving a Fossil-Free Recovery}}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/system/files/2021-07/achieving-ff-recovery-V3_0.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }