Reforma para la salida de subsidios ineficientes de combustibles fósiles en América Latina

This report by Transforma (March 2025) proposes a methodology for eliminating inefficient fossil fuel subsidies in Latin America to support a just energy transition. Using case studies from Colombia and Mexico, it argues that direct production subsidies should be prioritized for removal. The report suggests redirecting these funds into high-multiplier sectors—such as construction, agriculture, and water sanitation in Colombia, and electricity and manufacturing in Mexico—to drive economic growth and reduce greenhouse gas emissions.

• The report proposes the elimination of fossil fuel subsidies as a strategy to reduce greenhouse gas (GHG) emissions and promote a just energy transition in Latin America.
• In Colombia, the report identifies the construction, agriculture, and basic sanitation and water sectors as key opportunities for reallocating funds liberated from fossil fuel subsidies due to their potential for employment and economic growth.
• In Mexico, the electricity, construction, and manufacturing sectors are highlighted as having high potential for the redirection of resources from subsidies.
• The report analyzes two specific case studies: the 'Subsidio al desarrollo de infraestructura petrolera en áreas estratégicas' in Colombia and the 'Proyectos de Inversión Diferida en el Registro del Gasto (PIDIREGAS)' in Mexico.
• The analysis concludes that production subsidies for fossil fuels in both Colombia and Mexico have resulted in an inefficient allocation of resources.

APA

Osorio, P., Naranjo, S. B., Patiño, D. C. B., & Mogollón, A. M. (2025). Reforma para la salida de subsidios ineficientes de combustibles fósiles en América Latina. Transforma. https://transforma.global/wp-content/uploads/2025/05/250320-Reforma-para-la-salida-de-subsidios-ineficientes-de-combustibles-fosiles-en-America-Latina.pdf

Chicago

Osorio, Paula, Santiago Barbosa Naranjo, Diana Carolina Barba Patiño, and Ana María Mogollón. Reforma para la salida de subsidios ineficientes de combustibles fósiles en América Latina. Transforma, 2025. https://transforma.global/wp-content/uploads/2025/05/250320-Reforma-para-la-salida-de-subsidios-ineficientes-de-combustibles-fosiles-en-America-Latina.pdf.

Wikipedia

{{cite report |last1=Osorio |first1=Paula |last2=Naranjo |first2=Santiago Barbosa |last3=Patiño |first3=Diana Carolina Barba |last4=Mogollón |first4=Ana María |title=Reforma para la salida de subsidios ineficientes de combustibles fósiles en América Latina |publisher=Transforma |date=March 2025 |url=https://transforma.global/wp-content/uploads/2025/05/250320-Reforma-para-la-salida-de-subsidios-ineficientes-de-combustibles-fosiles-en-America-Latina.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{osorio2025reforma, author = {Osorio, Paula and Naranjo, Santiago Barbosa and Patiño, Diana Carolina Barba and Mogollón, Ana María}, title = {{Reforma para la salida de subsidios ineficientes de combustibles fósiles en América Latina}}, institution = {Transforma}, year = {2025}, month = mar, url = {https://transforma.global/wp-content/uploads/2025/05/250320-Reforma-para-la-salida-de-subsidios-ineficientes-de-combustibles-fosiles-en-America-Latina.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }