Building on Momentum: Recommendations from the GSI for Fossil Fuel Subsidy Reform at the G20

The policy brief argues that G20 countries should accelerate the phase-out of inefficient fossil fuel subsidies by adopting a clear timetable, increasing transparency through peer reviews, and ensuring targeted support for the poor. It highlights the success of voluntary peer review processes in APEC and the G20, and notes a growing international consensus—including commitments from G-7 countries to phase out such subsidies by 2025—to align fiscal policies with climate objectives.

• Voluntary peer review processes in APEC and the G20 help members identify and phase out inefficient fossil fuel subsidies that promote wasteful consumption. These reviews allow countries to define the scope and partners of the review, which helps overcome hesitation regarding negative feedback.
• Specific APEC peer reviews yielded different results: a review of New Zealand concluded that none of the eight examined measures were inefficient subsidies, while a review of Peru found that the Fuel Stabilization Fund and a VAT exemption for the Amazon region were not effective and should be removed in the long term.
• There is significant international momentum for reform, evidenced by G-7 countries committing to phase out inefficient fossil fuel subsidies that encourage wasteful consumption by 2025.
• Civil society organizations (CSOs) are pushing for more aggressive timelines than governments, with over 200 CSOs urging G20 members to set a deadline of 2020 for the full phase-out of all fossil fuel subsidies and the end of public finance for fossil fuels.
• The International Energy Agency (IEA) estimates that accelerating the partial phase-out of fossil fuel consumption subsidies could lead to a 10 per cent reduction in energy sector emissions by 2030.
• Since 2014, more than 25 countries have implemented some form of subsidy reform, including oil exporters such as Saudi Arabia, the United Arab Emirates, and Venezuela, which raised consumer prices to balance budgets.

APA

International Institute for Sustainable Development (2016). Building on Momentum: Recommendations from the GSI for Fossil Fuel Subsidy Reform at the G20. https://www.iisd.org/system/files/publications/building-on-momentum-recommendations-ffsr-g20.pdf

Chicago

International Institute for Sustainable Development. Building on Momentum: Recommendations from the GSI for Fossil Fuel Subsidy Reform at the G20. 2016. https://www.iisd.org/system/files/publications/building-on-momentum-recommendations-ffsr-g20.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Building on Momentum: Recommendations from the GSI for Fossil Fuel Subsidy Reform at the G20 |date=June 2016 |url=https://www.iisd.org/system/files/publications/building-on-momentum-recommendations-ffsr-g20.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopment2016building, author = {{International Institute for Sustainable Development}}, title = {{Building on Momentum: Recommendations from the GSI for Fossil Fuel Subsidy Reform at the G20}}, institution = {International Institute for Sustainable Development}, year = {2016}, month = jun, url = {https://www.iisd.org/system/files/publications/building-on-momentum-recommendations-ffsr-g20.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }