Tackling fossil fuel subsidies through international trade agreements: taking stock, looking forward

This research paper examines the limited role of the World Trade Organization (WTO) in addressing fossil fuel subsidies despite the mandates of the Paris Agreement and the 2030 Agenda. It analyzes the compatibility of specific G20 fossil fuel support measures with the 1994 Agreement on Subsidies and Countervailing Measures and proposes five avenues for international trade policy reform.

• While the World Trade Organization (WTO) is positioned to discipline trade-distorting subsidies, its involvement in fossil fuel subsidy reform has been limited. Specifically, WTO members have initiated disputes regarding renewable energy support but have not yet started legal proceedings against subsidies for coal, oil, or gas.
• Fossil fuel subsidies, estimated to cost several hundred billion dollars annually, negatively impact climate change objectives and Sustainable Development Goals by distorting investment and trade through their effect on fossil fuel prices.
• An analysis of four fossil fuel support measures within G20 countries against the WTO's 1994 Agreement on Subsidies and Countervailing Measures indicates that litigating fossil fuel consumption subsidies is difficult.

APA

Stockholm Environment Institute (2019). Tackling fossil fuel subsidies through international trade agreements: taking stock, looking forward. https://www.sei.org/publications/tackling-fossil-fuel-subsidies-through-international-trade-agreements-taking-stock-looking-forward/

Chicago

Stockholm Environment Institute. Tackling fossil fuel subsidies through international trade agreements: taking stock, looking forward. 2019. https://www.sei.org/publications/tackling-fossil-fuel-subsidies-through-international-trade-agreements-taking-stock-looking-forward/.

Wikipedia

{{cite report |author=Stockholm Environment Institute |title=Tackling fossil fuel subsidies through international trade agreements: taking stock, looking forward |date=27 February 2019 |url=https://www.sei.org/publications/tackling-fossil-fuel-subsidies-through-international-trade-agreements-taking-stock-looking-forward/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockholmenvironmentinstitute2019tackling, author = {{Stockholm Environment Institute}}, title = {{Tackling fossil fuel subsidies through international trade agreements: taking stock, looking forward}}, institution = {Stockholm Environment Institute}, year = {2019}, month = feb, url = {https://www.sei.org/publications/tackling-fossil-fuel-subsidies-through-international-trade-agreements-taking-stock-looking-forward/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }