Making It Happen

The report argues that G20 countries have failed to meet their 2009 pledge to phase out inefficient fossil fuel subsidies, with spending reaching USD 665 billion in 2023. It introduces a categorization framework that divides subsidies into 'quick phase-out' (within 1 year), 'phase-out with a robust strategy' (2-4 years), and 'time-limited exemptions' (4+ years). Applying this to Brazil, Germany, Italy, Mexico, and South Africa, the authors find that while a significant number of measures (30-55%) can be removed quickly, the majority of fiscal value is tied to deeply embedded structural subsidies requiring sequenced reform and mitigation measures.

• G20 countries have not met their 2009 commitment to phase out inefficient fossil fuel subsidies, with total spending reaching USD 665 billion in 2023, the second-highest amount ever recorded.
• The report establishes a three-tier framework for prioritizing subsidy reform based on energy security, socio-economic implications, and political sensitivity.
• Subsidies in the 'quick phase-out' category typically represent 30% to 55% of the total number of measures across the five studied G20 countries, though they often have lower fiscal value.
• The majority of the total fiscal value of subsidies falls under 'phase-out with a robust strategy,' as these measures are deeply embedded in economic systems and require mitigation to avoid disruption.
• Time-limited exemptions are rare and primarily reserved for ensuring energy access for vulnerable groups or where no viable alternatives exist.
• In the five case-study countries, 'phase-out with a robust strategy' measures accounted for between 46% and 89% of the quantified total fiscal value.
• The report identifies specific high-value subsidies in case countries, such as Brazil's BRL 36.2 billion fuel tax reductions for diesel, gasoline, and LPG, and South Africa's ZAR 47.4 billion carbon tax exemptions for companies like Eskom and Sasol.
• The International Court of Justice issued an advisory opinion in July 2025 stating that states may be legally required to reduce emissions, including by ending fossil fuel subsidies.

APA

Kuehl, J., Figueredo, P. O., & Cavolo, M. (2025). Making It Happen. International Institute for Sustainable Development. https://www.iisd.org/system/files/2025-11/g20-fossil-fuel-subsidies.pdf

Chicago

Kuehl, Jonas, Paula Osorio Figueredo, and Mario Cavolo. Making It Happen. International Institute for Sustainable Development, 2025. https://www.iisd.org/system/files/2025-11/g20-fossil-fuel-subsidies.pdf.

Wikipedia

{{cite report |last1=Kuehl |first1=Jonas |last2=Figueredo |first2=Paula Osorio |last3=Cavolo |first3=Mario |title=Making It Happen |publisher=International Institute for Sustainable Development |date=November 2025 |url=https://www.iisd.org/system/files/2025-11/g20-fossil-fuel-subsidies.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{kuehl2025making, author = {Kuehl, Jonas and Figueredo, Paula Osorio and Cavolo, Mario}, title = {{Making It Happen}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = nov, url = {https://www.iisd.org/system/files/2025-11/g20-fossil-fuel-subsidies.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }