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The text examines the governance of fossil fuel subsidies, noting that while institutional fragmentation across climate, trade, and economic regimes creates coordination challenges, it allows for multiple rationales to drive reform. It argues that because legally binding disciplines have largely failed to capture these subsidies, a system of informal international law—based on voluntary commitments and transparency efforts—has become significant. To increase the effectiveness of this governance complex, the author suggests clarifying the definition and measurement of subsidies and expanding transparency to more countries.

The policy brief examines how African pension funds can bridge the renewable energy investment gap in sub-Saharan Africa. It proposes the use of 'renewable energy-backed' (RE) bonds to align long-term pension obligations with energy infrastructure projects, reducing reliance on foreign currency and mitigating exchange risks. The author identifies a significant funding gap, noting that Africa requires approximately $70 billion in annual renewable energy investment until 2030, while actual investment in sub-Saharan Africa was only $10 billion in 2018 and $30 billion in 2019. To unlock this potential, the document recommends the creation of green banks to coordinate finance, the implementation of government-backed guarantee schemes to lower risk perceptions for regulators, and the removal of fossil fuel subsidies to improve the competitiveness of clean energy.

The document calls for urgent action to address the climate crisis, asserting that the necessary zero-emissions technologies already exist and are increasingly cost-competitive. It advocates for a broad spectrum of solutions, the immediate end of fossil fuel subsidies, and the rapid shutdown of coal plants and other carbon-intensive assets to prevent the planet from reaching an unbearable hothouse earth scenario.

The briefing proposes a coal tax for Indonesia to address the environmental and health costs of coal, which accounts for 40% of the energy sector's carbon emissions. Drawing on India's experience with a coal 'cess', the authors suggest a tax of IDR 78,700 (USD 5.50) per tonne, which could generate IDR 49 trillion (USD 3.6 billion) annually. This revenue could fund a just transition, compensate vulnerable households for rising electricity prices, and incentivize clean energy investment. The document notes that while Indonesia is considering an emissions trading scheme (ETS) and a carbon tax, these take longer to implement, making a targeted coal tax a more immediate and administratively simpler solution.

The document details the scale of U.S. fossil fuel subsidies, including direct federal and state funding and the impact of externalities. It reviews President Biden's Executive Order 14008 and the FY2022 budget proposal, which aim to eliminate tax preferences, reform foreign fossil fuel income taxation, and adjust royalty rates on public lands. It also addresses the shift in Department of Energy R&D funding and the goal of ending international financing for carbon-intensive energy through agencies like the DFC and EXIM.

The report finds that fossil fuel subsidies in India significantly outweigh those for clean energy, with the disparity increasing from 7 to 7.3 times the size of renewable subsidies between FY 2019 and FY 2020. While electric vehicle subsidies more than doubled by FY 2020, renewable energy subsidies fell nearly 45% from their FY 2017 peak. Additionally, seven major energy public sector undertakings invested 11 times more in fossil fuel projects than in renewable energy projects in FY 2020.

Canadian governments provided over CAD 23 billion in support to oil and gas pipelines between 2018 and 2021, with CAD 10 billion allocated after the start of the COVID-19 pandemic. This support, which includes loans and loan guarantees, is argued to undermine Canada's net-zero goals and international commitments to phase out inefficient fossil fuel subsidies.

The document details U.S. fossil fuel subsidies, estimated at $20.5 billion in direct annual costs and $649 billion when including externalities. It outlines administrative efforts under President Biden to eliminate these subsidies through the repeal of 13 tax preferences, the pausing of new public land leases, and the redirection of Department of Energy R&D funding toward climate-centric activities. Additionally, it lists several bills from the 117th Congress aimed at reforming tax subsidies and updating royalty rates.

The report finds that the complete removal of fossil fuel consumption subsidies across 32 modelled countries could reduce greenhouse gas emissions by an average of 6.09% by 2030. When combined with a 'subsidy swap' (reinvesting savings into energy efficiency and renewables) and a 10% energy tax, the average national emission reduction increases to 11.84%. The analysis highlights that while some countries like Venezuela see reductions over 30%, G20 nations provide the largest absolute reductions due to their economic scale. Financially, fossil fuel subsidy reform (FFSR) alone could generate USD 2.99 trillion in cumulative savings by 2030, offering a cost-effective mechanism for a 'green recovery' from the COVID-19 pandemic.

The report finds that fossil fuel subsidies in India increased relative to clean energy in FY 2020, with electricity transmission and distribution (T&D) remaining the largest subsidy category. While electric vehicle (EV) subsidies grew, renewable energy support stagnated. The authors argue that India's energy PSUs remain heavily skewed toward fossil fuel investments and lack clear decarbonization roadmaps. The report recommends a 'second generation' of clean energy support focusing on storage, green hydrogen, and offshore wind, alongside reforms to DISCOM finances and a strategic shift in PSU capital expenditure.

The report finds that Canadian governments provided over CAD 23 billion in support for oil and gas pipelines between 2018 and 2020, with over CAD 10 billion provided after the onset of COVID-19. This support, which includes loans, loan guarantees, and equity investments, is argued to undermine Canada's climate commitments and expose taxpayers to significant financial risk due to cost overruns, legal challenges, and declining private sector interest in fossil fuel infrastructure.

The We Mean Business Coalition, representing over 1,800 companies with a combined market cap of US$24.8 trillion, calls on G7 heads of state to adopt specific climate policies. Key recommendations include phasing out coal by 2030, ending fossil fuel subsidies by 2025, and mandating climate-related financial disclosures. The coalition argues that a green recovery will better boost GDP and employment than traditional stimulus measures and urges the G7 to lead by example ahead of G20 and COP26.

ClientEarth is supporting five Polish citizens in lawsuits against the Polish government, claiming that the state's failure to address climate change violates personal rights under the Polish Civil Code and human rights under the European Convention of Human Rights. The claimants seek a legally enforceable right to a healthy environment and a commitment from Poland to reduce greenhouse gas emissions by 61% by 2030 and reach net zero by 2043 to align with the Paris Agreement's 1.5 degree goal. The document highlights Poland's heavy reliance on coal, with 70% of electricity coming from coal and significant public subsidies for fossil fuels, as well as the specific climate-related impacts—such as droughts, floods, and wildfires—experienced by the claimants.

The document argues that the European Union can legally eliminate fuel tax exemptions for vessels, including fishing boats, even in international waters. It refutes claims that such a move violates UNCLOS Article 89 by asserting that EU-flagged vessels remain under flag-state jurisdiction and non-EU vessels can be linked to the EU via the port where they refuel. Furthermore, it concludes that UNCLOS lacks the 'direct effect' necessary for individuals or companies to legally challenge these tax changes in court. The briefing also notes that while the International Maritime Organization (IMO) is slow to implement global levies, strong EU regulation often accelerates international consensus.

The report finds that international public finance for gas in low- and middle-income countries is four times higher than for wind or solar, risking a 'dash for gas' that locks economies into high-carbon pathways. It argues that gas is no longer a necessary 'bridge fuel' because renewables are often cheaper and more effective for power, cooking, and industry. The document recommends that international financial institutions end support for gas and instead scale up clean energy finance, focusing on grid integration, technology transfer, and a just transition for workers.

The report analyzes the impact of three US federal tax subsidies—the expensing of intangible drilling costs (IDC), percentage depletion, and accelerated amortization of geological and geophysical (G&G) expenses—on the profitability of oil and gas projects from 1998 to 2019. Using a financial model of 2,450 fields, the authors find that these subsidies increased the expected net present value of projects by billions of dollars annually, often exceeding $20 billion in high-price years. The benefits were heavily concentrated in unconventional shale developments in regions such as the Permian Basin and Appalachia, and disproportionately benefited independent firms over integrated ones. While subsidies provided 'super normal' profits during high-price periods (2007-2014) without significantly altering drilling decisions, they were critical for the viability of marginal projects during price drops, such as in 2016 for oil and 2010-2012 for gas in Appalachia.

The document argues that transport is a critical driver of development but a major source of emissions, accounting for 23% of energy-related CO2. It defines sustainable transport as safe, affordable, and efficient mobility that minimizes environmental impacts. The report details the evolution of international policy from the 1972 Stockholm Conference to the Sustainable Development Goals, and provides examples of successful interventions, such as Jakarta's BRT system and various cities' shifts toward active mobility (cycling and walking). It specifically notes the COVID-19 pandemic as a catalyst for structural changes in urban transit, though it warns that 30 major economies continue to provide significant subsidies to fossil fuels over clean energy.

The report advocates for Indonesia to reform its LPG subsidies, which currently drain the national budget and disproportionately benefit wealthier citizens. It suggests that crises, such as COVID-19, can serve as opportunities for reform rather than reasons for delay. The document recommends shifting subsidies toward the poor, implementing robust data collection for beneficiaries, executing a public endorsement plan, and leveraging low oil prices to mitigate economic shocks.

The report analyzes government energy-related spending during the COVID-19 pandemic, finding that a significant portion of recovery funds still supports fossil fuel-intensive sectors. It proposes five core principles for a 'fossil-free recovery': ending public funding for fossil fuel production, reforming fossil fuel subsidies and taxes to raise revenue, 'swapping' those funds into clean energy (access, efficiency, transport, and power), incentivizing private investment in clean electricity, and ensuring a just transition for affected workers and communities.

Indonesia's LPG subsidies are regressive, primarily benefiting wealthier households and straining the national budget. The report analyzes proposed targeting mechanisms, such as facial biometrics, and evaluates the climate impact of switching to electric induction stoves. By examining how India and Mexico implemented fuel tax increases and targeted social protections during economic crises, the report argues that Indonesia can leverage low oil prices to reform subsidies and redirect funds toward vulnerable populations.