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

The document examines why the WTO has seen few legal proceedings against fossil fuel subsidies despite their distorting impact on trade and investment. It specifically analyses the compatibility of four fossil fuel support measures in G20 countries with the 1994 Agreement on Subsidies and Countervailing Measures, concluding that litigating consumption subsidies is particularly difficult.

• Despite the World Trade Organization's role in disciplining trade-distorting subsidies, its engagement with fossil fuel subsidy reform has been limited; while disputes regarding renewable energy support have increased, no legal proceedings have been initiated by members against subsidies for coal, oil, or gas.
• Fossil fuel subsidies, estimated to cost several hundred billion dollars annually, negatively impact the 2030 Agenda's Sustainable Development Goals and climate objectives by distorting trade and investment through their effect on 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} }