Why the Corporate Leaders Group supports Fossil Fuel Subsidy Reform

The Corporate Leaders Group (CLG) advocates for the phase-out of fossil fuel subsidies by 2025, arguing that these subsidies create perverse incentives that undermine carbon pricing and hinder the transition to a low-carbon economy. The document highlights that eliminating these subsidies could reduce global greenhouse gas emissions by 13% and free up significant government resources, particularly in developing countries where subsidies often exceed healthcare spending. CLG supports the Fossil Fuel Subsidy Reform Communiqué, which calls for transparency, ambition in timeframe, and targeted support for the poorest populations during the transition.

• Fossil fuel subsidies act as a counter-force to carbon pricing by promoting high-carbon activities and weakening the investment signals intended to drive decarbonisation.
• The total elimination of fossil fuel subsidies, including the integration of external damages like climate change into tax systems, is estimated to lower global greenhouse gas emissions by 13%.
• Fossil fuel subsidies create significant societal and fiscal imbalances, particularly in low and middle income countries where the wealthiest 20% receive six times more in subsidies than the poorest 20%, and in South-East Asia where they represent 5-30% of public expenditure.
• The Corporate Leaders Group supports the Fossil Fuel Subsidy Reform Communiqué, which advocates for three implementation principles: policy transparency, ambition regarding scope and timeframe, and targeted safeguards for the poorest.
• The Corporate Leaders Group calls for governments and businesses to commit to securing fossil fuel subsidy reform by 2025 at the latest.

APA

Dixson-Declève, S. (2015). Why the Corporate Leaders Group supports Fossil Fuel Subsidy Reform. We Mean Business Coalition. https://www.wemeanbusinesscoalition.org/blog/why-the-corporate-leaders-group-supports-fossil-fuel-subsidy-reform/

Chicago

Dixson-Declève, Sandrine. Why the Corporate Leaders Group supports Fossil Fuel Subsidy Reform. We Mean Business Coalition, 2015. https://www.wemeanbusinesscoalition.org/blog/why-the-corporate-leaders-group-supports-fossil-fuel-subsidy-reform/.

Wikipedia

{{cite press release |last1=Dixson-Declève |first1=Sandrine |title=Why the Corporate Leaders Group supports Fossil Fuel Subsidy Reform |publisher=We Mean Business Coalition |date=28 September 2015 |url=https://www.wemeanbusinesscoalition.org/blog/why-the-corporate-leaders-group-supports-fossil-fuel-subsidy-reform/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{dixsondeclve2015why, author = {Dixson-Declève, Sandrine}, title = {{Why the Corporate Leaders Group supports Fossil Fuel Subsidy Reform}}, publisher = {We Mean Business Coalition}, year = {2015}, month = sep, url = {https://www.wemeanbusinesscoalition.org/blog/why-the-corporate-leaders-group-supports-fossil-fuel-subsidy-reform/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }