Governing the transition away from fossil fuels: The role of international institutions

The paper examines the fragmented nature of global energy governance, mapping institutions like OPEC, IEA, and the World Bank. It argues that while most international bodies provide weak or indirect incentives to limit fossil fuel extraction, the UNFCCC and WTO offer multilateral platforms to implement supply-side policies, such as extraction-based accounting, fossil fuel subsidy reform, and mechanisms for net avoided emissions.

• Global governance of fossil fuel development is highly fragmented, with no single dominant institution and a historical divide between producer clubs like OPEC and consumer clubs like the IEA.
• Most international institutions influence fossil fuel extraction indirectly, primarily through market prices, though development banks can exert direct influence via project financing.
• The UNFCCC's current territorial-emissions-based accounting could be supplemented with extraction-based accounting using existing reporting tools like National Communications.
• While the G20, OECD, and IEA have discussed phasing out inefficient fossil fuel subsidies, the UNFCCC has remained largely silent on the issue despite potential avenues for action through INDCs or NAMAs.
• The concept of 'net avoided emissions' (NAE), inspired by Ecuador's Yasuní-ITT initiative, could provide economic incentives to leave reserves in the ground, though it faces challenges regarding market impact estimation and permanence.
• The WTO could improve the transparency of fossil fuel subsidies through the SCM Agreement's notification and surveillance systems, although no fossil fuel subsidy has yet been formally challenged by a member.
• Conflicting objectives exist between international institutions; for example, IEA goals favoring lower oil prices may conflict with UNFCCC goals of shifting to a low-carbon economy.

APA

van Asselt, H. (2014). Governing the transition away from fossil fuels: The role of international institutions. Stockholm Environment Institute. https://www.sei.org/mediamanager/documents/Publications/Climate/SEI-WP-2014-07-Fossil-fuels-intl-institutions.pdf

Chicago

van Asselt, Harro. Governing the transition away from fossil fuels: The role of international institutions. Stockholm Environment Institute, 2014. https://www.sei.org/mediamanager/documents/Publications/Climate/SEI-WP-2014-07-Fossil-fuels-intl-institutions.pdf.

Wikipedia

{{cite report |last1=van Asselt |first1=Harro |title=Governing the transition away from fossil fuels: The role of international institutions |publisher=Stockholm Environment Institute |date=October 2014 |url=https://www.sei.org/mediamanager/documents/Publications/Climate/SEI-WP-2014-07-Fossil-fuels-intl-institutions.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{vanasselt2014governing, author = {van Asselt, Harro}, title = {{Governing the transition away from fossil fuels: The role of international institutions}}, institution = {Stockholm Environment Institute}, year = {2014}, month = oct, url = {https://www.sei.org/mediamanager/documents/Publications/Climate/SEI-WP-2014-07-Fossil-fuels-intl-institutions.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }