Achieving a Fossil-Free Recovery

The report analyzes government energy-related spending during the COVID-19 pandemic, finding that a significant portion of recovery funds still supports fossil fuel-intensive sectors. It proposes five core principles for a 'fossil-free recovery': ending public funding for fossil fuel production, reforming fossil fuel subsidies and taxes to raise revenue, 'swapping' those funds into clean energy (access, efficiency, transport, and power), incentivizing private investment in clean electricity, and ensuring a just transition for affected workers and communities.

• In G20 and 11 other economies, 47% of the USD 585 billion in energy-related COVID-19 recovery support (USD 277 billion) was directed toward fossil fuel-intensive sectors, while 35% (USD 207 billion) went to clean energy sectors.
• Prior to the 2020 pandemic, global government support for fossil fuel production and consumption reached at least USD 802 billion, comprising USD 468 billion in subsidies, USD 77 billion in public finance, and USD 257 billion in state-owned enterprise (SOE) investments.
• The report estimates that reforming consumer subsidies for gasoline, diesel, and coal, combined with modest tax increases, could generate approximately USD 553 billion annually for recovery and net-zero transitions.
• A 'swap' is defined as any shift in public funds from fossil fuels to clean energy, focusing on four key areas: clean energy access for all, energy efficiency, decarbonization of transport, and the transformation of the power sector.
• To achieve net-zero by 2050, annual investment in renewables must reach USD 1.1 trillion by 2030, with 70% of this finance expected to come from private sources.
• The report recommends that governments use public finance institutions (PFIs) to de-risk renewable energy projects, using grants and concessional finance in early-stage markets and commercial-rate tools in more developed markets to avoid crowding out private finance.
• A just transition is described as a negotiated process based on social dialogue between governments, employers, and workers, aimed at maximizing positive social impacts and minimizing negative effects on those most affected by the shift to clean energy.
• The report warns that public support for natural gas risks creating carbon lock-in and stranded assets, as clean alternatives like wind and solar are often cheaper and the life-cycle emissions of gas can be high due to methane leaks.
• In the power sector, the report highlights that many sub-Saharan African electricity sectors are financially non-viable due to underpricing and low collection rates, as seen in South Africa's Eskom, which held ZAR 450 billion in unserviceable debt in 2019.
• Case studies illustrate successful swaps: Bangladesh's Solar Home System Program increased rural energy access from 25% to 80% and saved 1.14 million tonnes of kerosene; Ethiopia removed fossil fuel subsidies in 2008 to scale up hydro, solar, and wind generation.

APA

Sanchez, L., Bridle, R., Corkal, V., Gass, P., Geddes, A., Gerasimchuk, I., Kuehl, J., Laan, T., Moerenhout, T., Muttitt, G., Muzondo, C., Pant, A., Roth, J., Sharma, S., Viswamohanan, A., & Viswanathan, B. (2021). Achieving a Fossil-Free Recovery. International Institute for Sustainable Development. https://www.iisd.org/system/files/2021-05/achieving-fossil-free-recovery.pdf

Chicago

Sanchez, Lourdes, Richard Bridle, Vanessa Corkal, Philip Gass, Anna Geddes, Ivetta Gerasimchuk, Jonas Kuehl, et al. Achieving a Fossil-Free Recovery. International Institute for Sustainable Development, 2021. https://www.iisd.org/system/files/2021-05/achieving-fossil-free-recovery.pdf.

Wikipedia

{{cite report |last1=Sanchez |first1=Lourdes |last2=Bridle |first2=Richard |last3=Corkal |first3=Vanessa |last4=Gass |first4=Philip |last5=Geddes |first5=Anna |last6=Gerasimchuk |first6=Ivetta |last7=Kuehl |first7=Jonas |last8=Laan |first8=Tara |last9=Moerenhout |first9=Tom |display-authors=etal |title=Achieving a Fossil-Free Recovery |publisher=International Institute for Sustainable Development |date=May 2021 |url=https://www.iisd.org/system/files/2021-05/achieving-fossil-free-recovery.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sanchez2021achieving, author = {Sanchez, Lourdes and Bridle, Richard and Corkal, Vanessa and Gass, Philip and Geddes, Anna and Gerasimchuk, Ivetta and Kuehl, Jonas and Laan, Tara and Moerenhout, Tom and Muttitt, Greg and Muzondo, Chido and Pant, Aditya and Roth, Joachim and Sharma, Shruti and Viswamohanan, Anjali and Viswanathan, Balasubramanian}, title = {{Achieving a Fossil-Free Recovery}}, institution = {International Institute for Sustainable Development}, year = {2021}, month = may, url = {https://www.iisd.org/system/files/2021-05/achieving-fossil-free-recovery.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }