Fossil-Fuel Subsidy Reform Communiqué

The communiqué calls for the elimination of fossil-fuel subsidies to help limit global temperature increases to below 2°C, noting that such subsidies encourage wasteful consumption and hinder renewable energy investment. It emphasizes that reform should be transparent, ambitious, and accompanied by targeted support for the poor, while referencing existing commitments from the G20 and APEC.

• Eliminating fossil-fuel subsidies is critical for climate goals because they keep prices artificially low, which encourages wasteful consumption, disadvantages renewable energy, and reduces investment in energy efficiency. The International Energy Agency estimates 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 benefits, as the International Monetary Fund suggests prices should reflect supply costs, climate change impacts, and local air pollution health costs. Most of these subsidies are socially regressive, primarily benefiting middle- and upper-middle income households.
• While G20 and APEC leaders committed to phasing out inefficient fossil-fuel subsidies in 2009, there is an urgent need to translate these high-level commitments into action based on three principles: communication and transparency, ambition in scope and timeframe, and targeted support for the poorest.

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} }