Search Climate Insights Directory
26 results
Fuel Subsidies to Marine Fisheries in India: An overview
The document identifies fuel subsidies as the most significant form of government support for India's marine fisheries, accounting for an estimated 32% of total support in FY 2019. These subsidies, provided exclusively by state governments, primarily benefit larger-scale operations and risk increasing fishing efforts beyond sustainable levels. The brief highlights regional variations among focus states—Andhra Pradesh, Karnataka, Kerala, and Tamil Nadu—and suggests that India's experience with broader fossil fuel subsidy reforms, such as phased price hikes and providing clean alternatives, can inform the transition toward more sustainable support for small-scale fishers.
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Document type: Policy brief
Indonesia’s Energy Policy Briefing
The document analyzes Indonesia's energy landscape, highlighting a projected increase in LPG subsidies to IDR 66.3 trillion in 2022 and a decline in diesel subsidies. It examines the National Electricity Supply Business Plan (RUPTL) 2021–2030, noting that while it targets a 24.8% renewable energy share by 2030, coal remains dominant. The briefing also discusses the challenges of coal phase-out, the introduction of a carbon tax, and the gap between Indonesia's COP 26 commitments and its actual NDC targets.
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Document type: Briefing
Who Bears the Burden?
The analysis finds that Latino, Asian American, and African American residents in the Northeast and Mid-Atlantic are exposed to significantly higher levels of vehicle-related PM2.5 pollution than white residents. The report highlights that white residents comprise 85% of those in the lowest pollution areas, while people of color are overrepresented in the most polluted census tracts, often located near major highways in urban centers. The document argues for targeted investments in clean transportation, such as electric vehicles and buses, to reduce these environmental inequities.
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Document type: Fact sheet
How to Respond When Prices Go Up: Objectives and options for fuel price adjustments in Indonesia
The document evaluates Indonesia's transition from fixed fuel subsidies to market-aligned pricing, specifically for gasoline, diesel, and liquefied petroleum gas (LPG). It argues that while the 2015 reforms for gasoline and diesel saved approximately USD 15.6 billion, the system remains vulnerable to international price volatility. The brief proposes several price adjustment models—including smoothing, ratcheting, and cap-and-floor systems—to balance the government's need for fiscal sustainability with the necessity of protecting low-income consumers from sudden price spikes. It concludes with recommendations for a transparent, frequently updated pricing formula managed by an independent agency.
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Document type: Policy brief
One Fuel, Two Prices: International experiences with dual pricing of fuel
The document argues that dual pricing of fuel is generally difficult to implement due to high levels of leakage, illegal diversion, and shortages. It highlights that fuels easy to adulterate or smuggle, such as diesel, gasoline, and kerosene, are the hardest to dual price. The briefing examines various delivery mechanisms, noting that 'one-brand' systems using electronic transfers are generally more robust than 'two-brand' systems. Case studies from India, the Philippines, and El Salvador illustrate these challenges and potential technological solutions, such as smart cards and mobile phone-based subsidy transfers.
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Document type: Briefing
Re-Distributing Up: How fuel subsidy policy has short-changed Bihar
The report examines the distribution of centrally financed fuel subsidies in India, highlighting a significant disparity where Bihar, one of the poorest states, consistently receives the lowest per capita transfers for diesel, LPG, and kerosene compared to wealthier states like Haryana, Delhi, and Gujarat.
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Document type: Research paper
Diesel Subsidy Reform in India: Lessons learned
The report analyzes India's transition from a system of 'under-recoveries' for diesel to formal price decontrol in October 2014. It details a gradualist approach involving an initial price hike in September 2012 followed by monthly incremental increases. This strategy successfully reduced diesel demand and stabilized external sector deficits, though it incurred political costs for the UPA government. The document highlights that while diesel reform was achieved, other fuels like kerosene remained subsidized, and the government retained the ability to intervene in pricing through state-owned oil marketing companies.
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Document type: Report
INDONESIA ENERGY SUBSIDY BRIEFING
The Indonesian government implemented significant energy subsidy reforms starting in November 2014, transitioning from fixed prices to a more market-responsive pricing mechanism. While initial price hikes in November 2014 led to inflation and public protests, a sharp decline in global oil prices allowed the government to lower fuel prices in January 2015 while simultaneously removing subsidies on Premium gasoline in the Java-Madura-Bali region. The government aims to reallocate an estimated IDR 194.2 trillion in savings toward productive sectors, including infrastructure and state-owned enterprises. Additional reforms targeted LPG and electricity tariffs, supported by social assistance programs like the Indonesia Smart Card to mitigate impacts on vulnerable populations.
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Document type: Briefing
INDIA ENERGY SUBSIDY REVIEW
The report examines India's energy subsidy regime, highlighting the significant fiscal burden of fuel subsidies, which cost an average of 1.4 per cent of GDP since FY 2008. It details policy shifts in diesel, LPG, kerosene, and natural gas markets, noting that while the government has pursued incremental price increases for diesel and consumption caps for LPG, currency depreciation and high international oil prices have maintained high under-recoveries. The document also analyzes the regressive nature of these subsidies, their impact on the trucking industry, and the inefficiencies of subsidized agricultural electricity, which encourages groundwater depletion. It recommends transitioning toward market-based pricing, targeted cash transfers, and structural improvements in transport and irrigation management.
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Document type: Report
The Impacts of Diesel Price Increases on India’s Trucking Industry
The document analyzes how structural and regulatory inefficiencies in India's trucking industry, such as poor road quality and toll delays, exacerbate the impact of rising diesel prices. It finds that truck operators are largely 'price takers' unable to pass fuel cost increases to customers due to fierce competition and a dependence on brokers. To mitigate these impacts, the brief recommends short-term interventions like reducing toll waiting times and fixing minimum freight rates, alongside long-term structural reforms including computerized exchange networks and improved fuel efficiency standards.
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Document type: Policy brief
A CITIZENS’ GUIDE TO ENERGY SUBSIDIES IN THAILAND
The document provides a comprehensive overview of energy subsidies in Thailand, detailing the mechanisms used to subsidize LPG, NGV, diesel, electricity, and biofuels. It argues that while these subsidies aim to ensure affordability, they often disproportionately benefit higher-income groups, encourage wasteful consumption, and create fiscal strain on the government and state-owned enterprises. The guide outlines the negative impacts of these subsidies, such as fuel smuggling and environmental degradation, and suggests reform strategies based on international experience, emphasizing the need for market-based pricing and targeted social assistance.
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Document type: Guide
Republic of Rwanda: Greenhouse gas emissions baseline projection
The report establishes a business-as-usual emissions baseline for Rwanda from 1990 to 2030, identifying agriculture as the largest non-LULUCF emitting sector. It projects a transition from a significant net carbon sink in 2000 to a net emitter by 2010, with future projections based on GDP growth, population increases, and existing policies. The analysis highlights substantial data gaps and uncertainties, particularly in the LULUCF and agriculture sectors.
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Document type: Report
Recent Developments in Iran’s Energy Subsidy Reforms
The document assesses Iran's transition from heavy fossil fuel subsidies to a system of higher energy prices compensated by nationwide cash transfers. It details the 'shock therapy' approach to price increases for petrol, diesel, natural gas, and electricity, and the subsequent fiscal challenges in managing cash payouts. The brief highlights a reduction in most energy consumption but an increase in natural gas use, while noting significant inflationary pressures exacerbated by international sanctions. It concludes with recommendations to target cash transfers more precisely and shift toward in-kind mitigation measures.
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Document type: Policy brief
Truck Electrification
The report examines the application of hybrid-electric, battery-electric, fuel cell, and plug-in hybrid technologies in the US trucking sector. It highlights specific use cases, such as urban delivery, port drayage, and auxiliary power units, noting that while medium- and heavy-duty trucks make up only 4% of road vehicles, they account for approximately 20% of transportation fuel consumption. The document argues that expanding electrification is a key strategy for doubling truck fuel efficiency and halving projected US oil consumption over 20 years.
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Document type: Report
India's Fuel Subsidies: Q & A
In 2010-11, the Government of India spent over US$ 9 billion on fuel subsidies for diesel, kerosene, LPG, and gasoline, while national oil companies faced over US$ 8 billion in under-recoveries. The government aims to reduce total subsidy expenditure to 2% of GDP in 2012-13 and 1.75% in subsequent years, though reforms are complicated by potential economic disruptions in transport, industry, and agriculture, and the impact on poor citizens. To address this, the Global Subsidies Initiative and partners have evaluated the phase-out of diesel, LPG, and PDS kerosene subsidies and the use of cash-transfer schemes.
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Document type: Fact sheet
India’s Fuel Subsidies: Q & A
In 2011–12, India's fuel subsidies and under-recoveries totaled INR 1.4 trillion (US$ 27.7 billion), contributing to a fiscal deficit of 1.3 per cent of GDP. The document argues that these subsidies create market distortions, encourage fuel diversion, and undermine energy efficiency. It recommends a phased approach to reform: progressively decontrolling diesel prices over one year, capping LPG cylinders per household and phasing out subsidies over 3–5 years, and replacing PDS kerosene subsidies with targeted direct cash transfers for low-income households.
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Document type: Fact sheet
India’s Fuel Subsidies: Policy recommendations for reform
The document argues that India's fuel subsidies are fiscally unsustainable and create market distortions. It proposes a phased roadmap to eliminate diesel under-recoveries, phase out LPG subsidies through capping and price increases, and replace PDS kerosene subsidies with targeted cash transfers. To manage the resulting inflationary pressures and political opposition, the brief suggests specific compensation measures for transport sectors and the implementation of a biometric-based cash transfer system for low-income households.
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Document type: Policy brief
Clean Diesel versus CNG Buses: Cost, Air Quality, & Climate Impacts
The analysis finds that while CNG buses offer long-term fuel cost savings and lower long-term GHG emissions (GWP100), they have higher upfront costs and higher short-term climate impacts (GWP20) due to fugitive methane emissions. In capital-constrained environments, new diesel buses may provide greater fleet-wide reductions in criteria pollutants because more units can be purchased and older buses retired per dollar spent.
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Document type: Briefing
Federal Freight Efficiency Authority
The report argues that independent owner-operators in the U.S. are trapped in a cycle of using inefficient used Class-8 trucks due to subprime credit status and high upfront costs for new vehicles. It proposes the Federal Freight Efficiency Authority (FFEA), modeled after the Federal Housing Administration (FHA), to insure lease payments for new, efficient trucks. This mechanism would lower interest rates for truckers, increase their profit margins, and incentivize OEMs to produce more efficient vehicles. The author estimates that expanding this to small fleets could reduce Class-8 fuel consumption by 32%, saving 55 billion gallons of oil over ten years. The FFEA would be self-funded through insurance premiums and could potentially supplement the Highway Trust Fund with its profits.
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Document type: Report
Delivering the Green
The Union of Concerned Scientists analysis indicates that retrofitting new and existing heavy-duty trucks with aerodynamic technologies and fuel-efficient tires could reduce national global warming pollution by 17 million metric tons of CO2eq by 2020. Such improvements could save over 1.4 billion gallons of diesel fuel nationally and 200 million gallons annually in California by 2020, while providing net savings of over $30,000 over the life of a typical new long-range truck.
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Document type: Fact sheet