A Guidebook to Reviews of Fossil Fuel Subsidies

The document outlines a methodology for volunteering economies to identify, measure, and evaluate fossil fuel subsidies (FFS). It details the 'building blocks' of a review—definition, scope, measurement, and evaluation—and analyzes the practical application of these tools through case studies of self-reports (Finland, Sweden) and peer reviews within the G20 and APEC frameworks (China, USA, Peru, New Zealand). It emphasizes that these reviews are voluntary, non-adversarial tools designed to create a baseline for reform and facilitate international peer learning.

• Fossil fuel subsidies (FFS) have a global value of at least USD 425 billion annually and are characterized as being fiscally burdensome, economically inefficient, socially regressive, and environmentally harmful.
• The G7, G20, EU, and APEC have all committed to phasing out and rationalizing inefficient FFS that encourage wasteful consumption while maintaining targeted support for the poorest populations.
• The G7 established a specific deadline for the elimination of inefficient fossil fuel subsidies, encouraging all countries to do so by 2025.
• The World Trade Organization's (WTO) Agreement on Subsidies and Countervailing Measures (ASCM) is the most widely accepted and used definition for identifying subsidies in FFS reviews.
• FFS measurement typically relies on three combinable options: using existing estimates from organizations like the OECD or IEA, requesting data from government agencies, or commissioning independent analysis.
• The removal of global fossil fuel consumption subsidies is estimated to reduce carbon emissions by 6.4 to 8.2 per cent by 2050, while removing production subsidies could save 37 Gt of carbon dioxide emissions over the same period.
• Self-reviews in Finland and Sweden demonstrated that expanding the scope of reviews to include all 'environmentally harmful subsidies' (EHS) under EU commitments provided a more comprehensive basis for government decision-making.
• G20 peer reviews are conducted in economy pairs (such as China and the USA), with the OECD serving as the de facto secretariat, whereas APEC peer reviews do not require pairing and are supported by a dedicated VPR/IFFSR Secretariat.
• Case studies show that FFS reviews can lead to tangible reforms; for example, Indonesia's 2014 removal of gasoline subsidies saved IDR 211 trillion (USD 15.6 billion), which was reallocated to social welfare and infrastructure.
• Successful FFS reviews require significant resources, including a minimum of six months for the process and, in the case of developing economies, reliance on donor assistance such as USAID's ATAARI project.

APA

Gerasimchuk, I., Wooders, P., Merrill, L., Sanchez, L., & Kitson, L. (2017). A Guidebook to Reviews of Fossil Fuel Subsidies. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/guidebook-reviews-fossil-fuels-subsidies.pdf

Chicago

Gerasimchuk, Ivetta, Peter Wooders, Laura Merrill, Lourdes Sanchez, and Lucy Kitson. A Guidebook to Reviews of Fossil Fuel Subsidies. International Institute for Sustainable Development, 2017. https://www.iisd.org/system/files/publications/guidebook-reviews-fossil-fuels-subsidies.pdf.

Wikipedia

{{cite report |last1=Gerasimchuk |first1=Ivetta |last2=Wooders |first2=Peter |last3=Merrill |first3=Laura |last4=Sanchez |first4=Lourdes |last5=Kitson |first5=Lucy |title=A Guidebook to Reviews of Fossil Fuel Subsidies |publisher=International Institute for Sustainable Development |date=September 2017 |url=https://www.iisd.org/system/files/publications/guidebook-reviews-fossil-fuels-subsidies.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{gerasimchuk2017guidebook, author = {Gerasimchuk, Ivetta and Wooders, Peter and Merrill, Laura and Sanchez, Lourdes and Kitson, Lucy}, title = {{A Guidebook to Reviews of Fossil Fuel Subsidies}}, institution = {International Institute for Sustainable Development}, year = {2017}, month = sep, url = {https://www.iisd.org/system/files/publications/guidebook-reviews-fossil-fuels-subsidies.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }