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The document defines fossil fuel subsidies as mechanisms that price fuels below real costs, noting that explicit subsidies reached USD 1.1 trillion in 2023, while total estimates including climate and health costs exceed USD 7 trillion. It argues that these subsidies distort markets, encourage overconsumption, and undermine energy security by increasing vulnerability to global price shocks. The guide highlights that reform can reduce CO2 emissions by 1%–10% by 2030 and generate fiscal savings for reinvestment in clean energy. It notes that broad subsidies often disproportionately benefit high-income households, with the top 20% receiving up to six times more benefits than the poorest 20%. Examples of successful reforms are cited from Indonesia, India, and Italy. The document also details the role of COFFIS in improving transparency through national subsidy inventories and phase-out plans.

Debt-for-nature swaps allow countries to refinance debts in exchange for redirecting funds toward conservation. Through the US Tropical Forest and Coral Reef Conservation Act (TFCCA), these agreements are on pace to invest over $380 million across 14 countries to protect tropical forests and coral reef ecosystems. Examples include a 2002 agreement in Peru to preserve 27.5 million acres of forest and a 2004 agreement in Colombia to protect regions such as the El Tuparro Biosphere Reserve.