Search Climate Insights Directory

The report argues that India's reliance on liquefied petroleum gas (LPG) and piped natural gas (PNG) creates energy security risks and fiscal burdens due to high import dependence and subsidies. It advocates for a shift toward decentralized biogas for rural households and e-cooking for urban areas to align with net-zero goals. Fieldwork in Punjab, Rajasthan, and Uttarakhand shows that biogas is highly satisfactory and reduces firewood use by 70%, though high upfront costs remain a barrier. In urban centers like Delhi and Bengaluru, e-cooking is found to be cheaper in operational expenditure than LPG or PNG, with the potential to save the government up to INR 2.4 trillion in subsidies by 2050 under a high-growth scenario.

The document identifies that while prioritizing renewable energy investments offers the highest synergetic potential for economic growth and emission reductions in Kenya, significant trade-offs exist between climate goals and industrialization. It highlights a critical conflict between the deployment of renewable energy and electricity affordability, noting that high tariffs driven by infrastructure investments hinder equity. The brief also identifies institutional barriers, including public debt, corruption, and skewed decision-making representation, as primary drivers of policy incoherence.

The report examines the challenges of Just Energy Transition Partnerships (JETPs), noting their tendency to prioritize donor agendas and techno-economic frameworks over local social needs. It proposes South-South cooperation (SSC) as a vital complement to address these gaps through peer learning and context-specific solutions. Using South Africa and Colombia as case studies, the document identifies specific areas for collaboration, including mine closure, green industrialization, and the integration of peace-building experiences into transition planning.

The document outlines a five-step process for governments to develop fossil fuel subsidy inventories, emphasizing a whole-of-government approach and the use of international definitions. It highlights that global spending on fossil fuel subsidies exceeds USD 1 trillion annually, which strains budgets and hinders the transition to cleaner energy. The guide is specifically designed to support the 17 member countries of the Coalition on Phasing Out Fossil Fuel Incentives Including Subsidies (COFFIS) in meeting their commitment to publish subsidy inventories.

The report identifies induction stoves as the most practical alternative to LPG in Indonesia, noting that they are cheaper than unsubsidized LPG for both households and the government. It highlights that current universal LPG subsidies are the primary barrier to adoption and proposes a reform where subsidies for well-off households are replaced by induction subsidies, potentially saving the government IDR 7–12 trillion annually. Recommendations include lowering voltage upgrade costs, implementing one-off connection subsidies for stoves and cookware, and targeting LPG subsidies specifically to low-income households.

The report finds that while India has achieved a non-fossil electricity capacity share exceeding 50% in 2025, public finances remain heavily tied to fossil fuels. In FY 2024, fossil fuel revenues contributed nearly INR 9 lakh crore (USD 108 billion) to the exchequer, and 83% of central state-owned enterprise capital expenditures were directed toward fossils. Although clean energy subsidies grew by 31% year-on-year in FY 2024 and fossil fuel subsidies declined by 12%, the latter was attributed to cyclical price movements rather than structural policy. The study recommends improving the targeting of electricity subsidies, redirecting state-owned enterprise capital toward clean-tech, and diversifying government revenue through carbon pricing and green taxes.

The 2025 G20 presidency under South Africa served as a symbolic platform for African priorities, including debt sustainability and just energy transition, but faced significant challenges due to the absence of the US and a general lack of collective ambition on climate change. While the presidency successfully advanced discussions on critical minerals and disaster resilience, the Final Communiqué failed to mention transitioning away from fossil fuels, reflecting a broader trend of G20 paralysis on environmental leadership.

Colombia is projected to face a gas supply deficit starting in 2030, with domestic production and import capacity unable to meet demand. The report argues that this vulnerability can be mitigated by implementing energy efficiency measures in the industrial sector and electrifying cooking and water heating in the residential sector. Together, these actions could reduce 2030 gas demand by 21,545 GBtu, which is 1.5 times the projected deficit for that year. The authors recommend a planned exit from gas, including a national appliance replacement programme, the reorientation of subsidies toward electrification, and the limitation of new fossil fuel infrastructure to avoid carbon lock-in.

Colombia faces a projected gas supply deficit from 2030 onwards as domestic production declines. The report argues that the country can mitigate this risk and avoid costly imports by implementing energy efficiency in industry and electrifying cooking and water heating in the residential sector. It recommends a planned, just transition that includes a national appliance replacement programme, the reorientation of subsidies, and the limitation of new fossil fuel infrastructure to avoid carbon lock-in.

Colombia faces a projected gas supply deficit starting in 2030, as national production declines and import capacity becomes insufficient. The report argues that this vulnerability can be mitigated by reducing demand through a 14% increase in industrial energy efficiency and the electrification of residential cooking and water heating. Specifically, replacing 10% of gas stoves and 30% of water heaters with electric alternatives could significantly lower demand. The authors recommend a planned, just transition that includes reorienting subsidies toward electrification, implementing a national equipment replacement program, and avoiding long-term fossil fuel lock-ins like fracking.

The document outlines a five-step process for governments to identify and quantify fossil fuel subsidies: applying a whole-of-government approach, establishing a comprehensive scope based on WTO standards, choosing measurement methods (price-gap vs. inventory), evaluating socio-economic and environmental impacts, and ensuring regular public disclosure. It emphasizes the use of the WTO Agreement on Subsidies and Countervailing Measures (ASCM) as a minimum baseline and highlights the role of effective carbon rates (ECRs) in improving cross-country comparability.

Indonesia faces significant fiscal strain and energy security risks due to its heavy reliance on imported, subsidized LPG, which is used by 84% of households. The report evaluates three alternatives: induction stoves, dimethyl ether (DME), and city gas. It concludes that induction is the only viable non-fossil option, offering health benefits and long-term fiscal savings if paired with electricity tariff reform and a decarbonized grid. DME and city gas are deemed economically unviable or incompatible with climate goals. The report provides a policy roadmap focusing on making electricity upgrades affordable, implementing means-tested induction subsidies, and reforming LPG subsidies to target only the poorest households.

The report finds that while India has achieved its non-fossil electricity capacity target of 50% by 2025, government support for fossil fuels remains five times larger than for clean energy. Total government support to energy in FY 2024 was at least INR 6.3 lakh crore (USD 75 billion), with a significant portion shifting from direct subsidies to investments by state-owned enterprises (SOEs) and public financial institutions (PFIs). The analysis highlights a critical fiscal reliance on fossil fuel revenues, which account for 90% of energy revenues, and a growing burden of electricity subsidies for end consumers that constrains fiscal space for clean energy. The report recommends transitioning to targeted direct benefit transfers for electricity, phasing out fossil fuel production subsidies, and implementing a strategic roadmap for aligning public finance with net-zero goals by 2047.

The document assesses the feasibility of using domestic fiscal tools—explicit fossil fuel subsidies (EFFS) and environmental taxes—to close Africa's climate finance gap, which is estimated at 5–10% of GDP. While these tools could contribute 1.7% and 1.1% of GDP respectively, the author argues they are insufficient to fully close the gap. The paper recommends establishing independent fuel reserve authorities to manage price volatility and suggests a gradual, long-term withdrawal of subsidies to avoid social unrest and inflation. It highlights that Africa's climate finance is heavily dependent on foreign sources and public funding compared to global averages.

The research paper analyzes clean cooking policies across 43 G20 countries, finding that 50%–70% of public spending is directed toward direct fiscal support, primarily LPG subsidies. It argues that these subsidies often fail to reach the poorest populations, create fiscal burdens, and undermine energy security and climate goals. The author recommends that G20 nations phase out inefficient fossil fuel subsidies and implement national roadmaps prioritizing electricity, biogas, and solar energy to meet SDG 7 targets by 2030.

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.

The We Mean Business Coalition supports the development of a fossil-fuel roadmap for COP30, arguing that such a framework can provide the clarity on targets and timelines necessary for long-term corporate investment. The Coalition emphasizes that for the roadmap to be effective, it must prioritize clean electrification, grid modernization, the removal of inefficient fossil fuel subsidies, and a co-developed process that addresses the differing needs of the Global North and South to ensure a just transition.

The G20 is characterized as an effective platform for macroeconomic crisis response that consistently fails to address systemic inequities, debt burdens, and environmental degradation. While the forum represents 85% of global GDP, its legitimacy is contested due to the dominance of G7 members and the fact that G20 members provided $1.4tn in explicit fossil-fuel support in 2022. The report notes that recent Global South presidencies (Indonesia, India, Brazil, and South Africa) have shifted priorities toward energy transition financing, digital public infrastructure, taxation of the super-rich, and care economies. The author recommends that the G20 redefine 'crisis' to include human and planetary security and integrate justice metrics into its coordination efforts.

The report analyzes energy subsidies and revenues in Chhattisgarh between FY 2020 and 2024, finding that fossil fuel subsidies have doubled since 2020 and that 78% of energy-related revenues depend on fossil fuels. While the state government provides 98% of electricity subsidies, clean energy subsidies account for only 8% of total quantified subsidies. The document recommends establishing state-level net-zero targets, better targeting electricity subsidies, diversifying revenue beyond coal, oil, and gas, and creating social support mechanisms for coal-dependent workers.

The International Institute for Sustainable Development (IISD) describes Canada's 2025 budget as providing mixed signals. While it praises the commitment to critical minerals and industrial carbon pricing, it criticizes the expansion of fossil fuel subsidies for LNG and carbon capture, as well as cuts to international development assistance.