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

This policy brief from the International Institute for Sustainable Development (IISD) provides recommendations for G20 countries to reform fossil fuel subsidies. It advocates for the use of voluntary peer review processes to increase transparency, the establishment of an ambitious and defined timetable for phasing out inefficient subsidies, and the implementation of targeted support to protect the poorest populations during the transition.

• Voluntary peer review processes in the G20 and APEC are designed to help members phase out inefficient fossil fuel subsidies that promote wasteful consumption. These reviews allow countries freedom in defining the process and selecting partners to ensure discussions focus on policies agreed to be 'inefficient'.
• Specific APEC peer reviews have yielded varied results: a review of New Zealand's eight measures concluded none were inefficient subsidies resulting in wasteful consumption, while a review of Peru's policies found that the Fuel Stabilization Fund and a VAT exemption for the Amazon region were not effective and should be removed long-term.
• There is growing international momentum for reform, evidenced by a Communiqué endorsed by over 40 countries and a G-7 commitment in May 2016 to phase out inefficient fossil fuel subsidies by 2025.
• The G20 has committed to rationalizing inefficient subsidies over the 'medium term' since 2009, but this timeframe remains undefined. The IISD-GSI argues that defining a specific deadline is necessary to establish criteria for measuring and reporting subsidies.
• Civil society organizations (CSOs) are pushing for more aggressive timelines than the G-7, urging G20 governments to set a deadline of 2020 for the full phase-out of fossil fuel subsidies and the end of public finance for fossil fuels.
• Global trends show that over 25 countries have implemented subsidy reforms since 2014, including oil-exporting nations like Saudi Arabia, the United Arab Emirates, and Venezuela, which have raised consumer prices to balance budgets.
• The 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.

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} }