After the oil crash, we need a managed wind-down of fossil fuel production

This perspective piece argues that governments must implement a planned and equitable wind-down of fossil fuel production to meet climate goals and avoid market volatility, particularly in the wake of the Covid-19 pandemic and the resulting oil price crash.

• Research indicates that government plans for fossil fuel extraction by 2030 are significantly higher than what is compatible with the Paris Agreement's 1.5°C warming limit, specifically projecting 60% more oil, 70% more gas, and 280% more coal.
• The authors advocate for a managed transition away from fossil fuels, suggesting that government stimulus, bailouts, and the nationalisation of stranded assets should be conditional on diversifying beyond fossil fuels and investing in green industry.
• There is a call to reform fossil fuel consumption subsidies, which totaled at least $400 billion in 2018, and to utilize taxes on oil and gas consumption to fund Covid-19 crisis responses.
• A just transition requires social dialogue and inclusive planning to support fossil fuel workers and vulnerable communities, including multilateral and bilateral cooperation for resource-poor countries.

APA

Verkuijl, C., Gerasimchuk, I., & Hagelberg, N. (2020). After the oil crash, we need a managed wind-down of fossil fuel production. Stockholm Environment Institute. https://www.sei.org/perspectives/after-the-oil-crash-we-need-a-managed-wind-down-of-fossil-fuel-production/

Chicago

Verkuijl, Cleo, Ivetta Gerasimchuk, and Niklas Hagelberg. After the oil crash, we need a managed wind-down of fossil fuel production. Stockholm Environment Institute, 2020. https://www.sei.org/perspectives/after-the-oil-crash-we-need-a-managed-wind-down-of-fossil-fuel-production/.

Wikipedia

{{cite press release |last1=Verkuijl |first1=Cleo |last2=Gerasimchuk |first2=Ivetta |last3=Hagelberg |first3=Niklas |title=After the oil crash, we need a managed wind-down of fossil fuel production |publisher=Stockholm Environment Institute |date=8 May 2020 |url=https://www.sei.org/perspectives/after-the-oil-crash-we-need-a-managed-wind-down-of-fossil-fuel-production/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{verkuijl2020after, author = {Verkuijl, Cleo and Gerasimchuk, Ivetta and Hagelberg, Niklas}, title = {{After the oil crash, we need a managed wind-down of fossil fuel production}}, publisher = {Stockholm Environment Institute}, year = {2020}, month = may, url = {https://www.sei.org/perspectives/after-the-oil-crash-we-need-a-managed-wind-down-of-fossil-fuel-production/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }