Following the Money: Fossil fuel subsidy reform en route from Durban to Rio+20

The document reports on a side event at the 17th Conference of the Parties to the UNFCCC in Durban, where delegates and experts discussed the economic and environmental benefits of phasing out fossil fuel subsidies. It highlights the disparity between the US$100 billion Green Climate Fund and the US$400–600 billion in annual global fossil fuel subsidies. The report details the activities of the 'Friends of Fossil Fuel Subsidy Reform' group, the challenges of political economy in implementing reforms, and proposals to integrate subsidy reform into Nationally Appropriate Mitigation Actions (NAMAs) and the Rio+20 conference.

• Global annual government support for fossil fuels is estimated at US$400–600 billion, which is four to six times larger than the US$100 billion Green Climate Fund.
• Phasing out fossil fuel consumer subsidies in emerging and developing economies could result in a 6 per cent reduction in greenhouse gas emissions by 2050 compared to the baseline, while providing economic efficiency gains.
• Despite commitments from the G-20 and APEC in 2009 to phase out inefficient subsidies, progress has been slow, and some governments increased research, development, and deployment (RD&D) spending to maintain the fossil fuel status quo by 323 per cent in 2009 (rising from a 2000–2008 average of US$1.4 billion to US$5.8 billion).
• The 'Friends of Fossil Fuel Subsidy Reform' is an informal group consisting of eight countries: Costa Rica, Denmark, Ethiopia, Finland, New Zealand, Norway, Sweden, and Switzerland.
• Reform efforts often face political resistance from industry and the public; however, negative social and competitiveness impacts can be mitigated through gradual phase-outs and targeted support programs, as demonstrated by Ethiopia's monthly downward adjustments over one year.
• There is a consensus that improved transparency and better quantification methodologies for subsidies are necessary to gain public support and implement reform, though experts disagree on whether reporting should be voluntary or obligatory.
• Proposed strategies to advance reform include incorporating it into Nationally Appropriate Mitigation Actions (NAMAs) and securing a pledge at the Rio+20 conference for countries to phase out subsidies that undermine sustainable development.

APA

Gerasimchuk, I., & Zamudio, N. (2012). Following the Money: Fossil fuel subsidy reform en route from Durban to Rio+20. International Institute for Sustainable Development. https://www.iisd.org/gsi/sites/default/files/ffs_sideevent_following.pdf

Chicago

Gerasimchuk, Ivetta, and Natalia Zamudio. Following the Money: Fossil fuel subsidy reform en route from Durban to Rio+20. International Institute for Sustainable Development, 2012. https://www.iisd.org/gsi/sites/default/files/ffs_sideevent_following.pdf.

Wikipedia

{{cite report |last1=Gerasimchuk |first1=Ivetta |last2=Zamudio |first2=Natalia |title=Following the Money: Fossil fuel subsidy reform en route from Durban to Rio+20 |publisher=International Institute for Sustainable Development |date=February 2012 |url=https://www.iisd.org/gsi/sites/default/files/ffs_sideevent_following.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{gerasimchuk2012following, author = {Gerasimchuk, Ivetta and Zamudio, Natalia}, title = {{Following the Money: Fossil fuel subsidy reform en route from Durban to Rio+20}}, institution = {International Institute for Sustainable Development}, year = {2012}, month = feb, url = {https://www.iisd.org/gsi/sites/default/files/ffs_sideevent_following.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }