Fossil-Fuel Subsidy Reform Communiqué

The Fossil-Fuel Subsidy Reform Communiqué advocates for the accelerated elimination of fossil-fuel subsidies to meet global climate targets, citing economic, environmental, and social benefits while emphasizing the need for transparency and protections for vulnerable populations.

• The elimination of fossil-fuel subsidies is presented as a critical tool for reducing global greenhouse gas emissions to keep the average temperature increase below 2°C above preindustrial levels. Subsidies are described as creating artificial low prices that lead to wasteful consumption, hinder renewable energy, and reduce investment in energy efficiency. The International Energy Agency (IEA) suggests that a partial phase-out could provide 12% of the total abatement required by 2020 to maintain the 2°C target.
• Fossil-fuel subsidy reform offers economic and environmental advantages and supports sustainable development. The International Monetary Fund (IMF) argues that prices should account for supply costs, climate change impacts, and local air pollution health costs. Furthermore, most subsidies are considered socially regressive because they primarily benefit middle- and upper-middle income households. Reform is expected to release funding for sustainable development and environmental priorities, provided that measures are in place to protect poor and vulnerable groups from rising energy costs.
• Various international bodies and groups have committed to phasing out inefficient fossil-fuel subsidies, including the G20 in September 2009 and APEC in November 2009. A group of non-G20 "Friends" countries—comprising Costa Rica, Denmark, Ethiopia, Finland, New Zealand, Norway, Sweden, and Switzerland—was formed to support these global reform efforts through the United Nations Framework Convention on Climate Change and the United Nations Conference on Sustainable Development.
• The document outlines three interrelated principles to translate high-level commitments into practical action: communication and transparency (including public and civil society engagement for a bottom-up approach), ambition regarding the scope and timeframe of implementation, and targeted support to safeguard the poorest populations.

APA

International Institute for Sustainable Development (n.d.). Fossil-Fuel Subsidy Reform Communiqué. https://www.iisd.org/system/files/publications/FFSR_Communique_17_4_2015.pdf

Chicago

International Institute for Sustainable Development. Fossil-Fuel Subsidy Reform Communiqué. n.d. https://www.iisd.org/system/files/publications/FFSR_Communique_17_4_2015.pdf.

Wikipedia

{{cite press release |author=International Institute for Sustainable Development |title=Fossil-Fuel Subsidy Reform Communiqué |url=https://www.iisd.org/system/files/publications/FFSR_Communique_17_4_2015.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{internationalinstituteforsustainabledevelopmentndfossilfuel, author = {{International Institute for Sustainable Development}}, title = {{Fossil-Fuel Subsidy Reform Communiqué}}, publisher = {International Institute for Sustainable Development}, url = {https://www.iisd.org/system/files/publications/FFSR_Communique_17_4_2015.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }