Reforming Environmentally Harmful Subsidies

The document argues that reforming environmentally harmful subsidies (EHS), which total over USD 2 trillion annually, is a critical lever for systemic transformation in climate and biodiversity finance. It calls for philanthropic organizations to invest in co-creating essential tools for scalable action—such as improved transparency, awareness, and coordination—while building political momentum through a combination of direct policy advice and public advocacy. The playbook emphasizes the need for multi-year commitments and the development of transition strategies for current subsidy beneficiaries to overcome strong opposition to reform.

• Environmentally harmful subsidies (EHS) exceed USD 2 trillion annually, representing a massive finance leveraging opportunity for climate and biodiversity goals that far outweighs current philanthropic contributions to these sectors.
• Successful EHS reform requires the co-development of transition and repurposing strategies for current beneficiaries, alongside the creation of context-specific narratives and the mobilization of credible champions to build political support.
• Scalable action is currently hindered by strong, consolidated opposition and a lack of essential tools; philanthropic investment is needed to improve transparency, awareness, and coordination among governments, CSOs, think tanks, and progressive businesses.

APA

Gerasimchuk, I., Doan, D., McConnell, C., Urazova, I., Laan, T., Tipping, A., & Morra, F. (2025). Reforming Environmentally Harmful Subsidies. International Institute for Sustainable Development. https://www.iisd.org/publications/report/environmentally-harmful-subsidies-reform

Chicago

Gerasimchuk, Ivetta, Darcie Doan, Claire McConnell, Indira Urazova, Tara Laan, Alice Tipping, and Fernando Morra. Reforming Environmentally Harmful Subsidies. International Institute for Sustainable Development, 2025. https://www.iisd.org/publications/report/environmentally-harmful-subsidies-reform.

Wikipedia

{{cite report |last1=Gerasimchuk |first1=Ivetta |last2=Doan |first2=Darcie |last3=McConnell |first3=Claire |last4=Urazova |first4=Indira |last5=Laan |first5=Tara |last6=Tipping |first6=Alice |last7=Morra |first7=Fernando |title=Reforming Environmentally Harmful Subsidies |publisher=International Institute for Sustainable Development |date=11 February 2025 |url=https://www.iisd.org/publications/report/environmentally-harmful-subsidies-reform |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{gerasimchuk2025reforming, author = {Gerasimchuk, Ivetta and Doan, Darcie and McConnell, Claire and Urazova, Indira and Laan, Tara and Tipping, Alice and Morra, Fernando}, title = {{Reforming Environmentally Harmful Subsidies}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = feb, url = {https://www.iisd.org/publications/report/environmentally-harmful-subsidies-reform}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }