From Commitment to Implementation

This guide provides a structured framework for governments to develop and implement national or subnational fossil fuel subsidy (FFS) phase-out plans. It advocates for a whole-of-government approach to coordinate across ministries and proposes a three-category classification system to prioritize subsidies based on their risk to energy security, social stability, and political feasibility. The framework aims to move governments from general commitments to actionable, time-bound implementation roadmaps.

• The guide proposes a three-step framework for governments to phase out fossil fuel subsidies: establishing a whole-of-government approach, categorizing subsidies along defined timelines, and executing the phase-out plan through concrete actions and accountability mechanisms.
• A whole-of-government approach is necessary because fossil fuel subsidies often span multiple ministries (such as energy, finance, agriculture, industry, transport, and social affairs), and siloed decision-making can lead to unintended consequences.
• The guide categorizes subsidies into three timelines based on a decision tree that evaluates energy security, social/economic/environmental implications, and political sensitivity: 'quick phase-out' (within 1 year), 'phase-out with a robust strategy' (within 2–4 years), and 'time-limited exemption from phase-out' (4+ years).
• Subsidies suitable for 'quick phase-out' typically include producer subsidies for new fossil fuel supply (e.g., exploration tax credits) and consumer subsidies for luxury uses or niche sectors that do not pose major risks to energy security or political stability.
• Subsidies requiring a 'robust strategy' are those where removal may trigger public backlash or affect competitiveness and affordability. These should be phased out over 2–4 years, often aligned with a single administration's tenure, and supported by mitigation measures like targeted cash transfers.
• Time-limited exemptions are reserved for rare cases where phase-out is not yet technically feasible or would cause severe harm, such as LPG subsidies for vulnerable households without electricity or subsidies for post-production environmental remediation.
• The guide emphasizes that exemptions must not be 'no-action' categories; they must be clearly justified, time-bound with sunset clauses, and linked to a roadmap for transitioning to non-fossil alternatives.
• Implementation of phase-out plans requires specific actions including affordability analysis, the design of mitigation measures, and regular annual reporting to maintain transparency and public trust.

APA

Kuehl, J., Skovgaard, J., & Cavolo, M. (2025). From Commitment to Implementation. International Institute for Sustainable Development. https://www.iisd.org/system/files/2025-11/fossil-fuel-subsidy-phase-out-plans.pdf

Chicago

Kuehl, Jonas, Jakob Skovgaard, and Mario Cavolo. From Commitment to Implementation. International Institute for Sustainable Development, 2025. https://www.iisd.org/system/files/2025-11/fossil-fuel-subsidy-phase-out-plans.pdf.

Wikipedia

{{cite report |last1=Kuehl |first1=Jonas |last2=Skovgaard |first2=Jakob |last3=Cavolo |first3=Mario |title=From Commitment to Implementation |publisher=International Institute for Sustainable Development |date=November 2025 |url=https://www.iisd.org/system/files/2025-11/fossil-fuel-subsidy-phase-out-plans.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{kuehl2025from, author = {Kuehl, Jonas and Skovgaard, Jakob and Cavolo, Mario}, title = {{From Commitment to Implementation}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = nov, url = {https://www.iisd.org/system/files/2025-11/fossil-fuel-subsidy-phase-out-plans.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }