REFORMA SUBSIDIOS de los a los combustibles fósiles en Latinoamérica y el Caribe

The report analyzes the state of fossil fuel subsidies in Latin America and the Caribbean, highlighting their regressive nature and economic inefficiency. It provides a framework for a just transition, recommending transparent measurement, participatory planning, and the use of saved funds for social protection and renewable energy.

• Global fossil fuel subsidies reached record highs in 2022, potentially doubling from 2021 levels to between USD 1 trillion and 1.3 trillion due to economic recovery and the Russian invasion of Ukraine.
• In Latin America and the Caribbean, explicit fossil fuel subsidies rose from USD 35.2 billion in 2020 to USD 56.7 billion in 2022, with oil being the primary subsidized fuel at 55% of the total.
• Fossil fuel subsidies in the region are regressive, disproportionately benefiting the wealthiest populations; in South and Central America, the top 20% of earners received over 43% of the benefits in 2015.
• Mexico is the region's largest subsidizer of fossil fuels, with FFST estimates reaching USD 23.4 billion in 2021, driven by policies to recover energy sovereignty and support the state company PEMEX.
• Venezuela's subsidy policy has contributed to severe economic decline and corruption, with 2022 subsidies estimated at 14% of its GDP, exceeding the total amount of the country's external debt when viewed over the 2010-2022 period.
• Argentina has implemented a targeted reform by segmenting electricity and gas tariffs by income level, which reduced subsidies for high-income households while maintaining or increasing them for low- and middle-income groups.
• Colombia's Fuel Price Stabilization Fund (FEPC) shifted from a stabilization mechanism to a subsidy during the pandemic, with the fiscal deficit of the fund reaching 2.5% of GDP in 2022.
• The report recommends that developed countries eliminate fossil fuel subsidies by 2025 and developing countries by 2035 to align with carbon neutrality goals for 2050.
• Successful subsidy reform requires a sequenced approach including transparent measurement, public participation, and the implementation of social protection measures—such as cash transfers—before price increases occur.

APA

Bermúdez, D. C., López, A., Mogollón, A. M., Ramos, J. L. D., Flechas, L., Pabón, G., & Pinzón, Á. D. (2023). REFORMA SUBSIDIOS de los a los combustibles fósiles en Latinoamérica y el Caribe. Transforma. https://transforma.global/wp-content/uploads/2024/Documentos_PDF/informe_subsidios.pdf

Chicago

Bermúdez, Daniel Cooper, Alejandra López, Ana María Mogollón, Jose Luis Díaz Ramos, Laura Flechas, Giovanni Pabón, and Álvaro Daniel Pinzón. REFORMA SUBSIDIOS de los a los combustibles fósiles en Latinoamérica y el Caribe. Transforma, 2023. https://transforma.global/wp-content/uploads/2024/Documentos_PDF/informe_subsidios.pdf.

Wikipedia

{{cite report |last1=Bermúdez |first1=Daniel Cooper |last2=López |first2=Alejandra |last3=Mogollón |first3=Ana María |last4=Ramos |first4=Jose Luis Díaz |last5=Flechas |first5=Laura |last6=Pabón |first6=Giovanni |last7=Pinzón |first7=Álvaro Daniel |title=REFORMA SUBSIDIOS de los a los combustibles fósiles en Latinoamérica y el Caribe |publisher=Transforma |date=5 December 2023 |url=https://transforma.global/wp-content/uploads/2024/Documentos_PDF/informe_subsidios.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bermdez2023reforma, author = {Bermúdez, Daniel Cooper and López, Alejandra and Mogollón, Ana María and Ramos, Jose Luis Díaz and Flechas, Laura and Pabón, Giovanni and Pinzón, Álvaro Daniel}, title = {{REFORMA SUBSIDIOS de los a los combustibles fósiles en Latinoamérica y el Caribe}}, institution = {Transforma}, year = {2023}, month = dec, url = {https://transforma.global/wp-content/uploads/2024/Documentos_PDF/informe_subsidios.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }