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Cultivating Governance: Cautionary tales for biofuel policy reformers
The document analyzes the mismatch between the stated environmental goals of biofuel policies and their actual political objectives, such as supporting agricultural constituencies. It argues that subsidies often create market distortions and unintended consequences, such as increasing food prices and harming the environment. The authors recommend phasing out support for food-based biofuels, adopting carbon pricing and the removal of fossil fuel subsidies as 'first-best' alternatives, and adhering to good governance principles and the Precautionary Principle to manage uncertainty regarding indirect land use change and food security.
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Document type: Policy brief
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
Reforming Fossil‐Fuel Subsidies to Reduce Waste and Limit CO2 Emissions while Protecting the Poor
The report analyzes the economic, environmental, and social impacts of fossil-fuel subsidies in APEC economies, estimating that consumption subsidies alone cost at least US$105 billion in 2010. It argues that such subsidies are often regressive, benefiting wealthier populations and increasing GHG emissions. The document proposes a three-phase reform framework—research, developing options, and implementation—and details case studies from Australia, Indonesia, Chile, Mexico, Thailand, China, and Russia to illustrate best practices in transparency, targeted social compensation (such as cash transfers), and gradual price deregulation.
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Document type: Report
A CITIZENS’ GUIDE TO ENERGY SUBSIDIES IN NIGERIA
The document examines Nigeria's energy subsidy regime, focusing on Premium Motor Spirit (PMS), household kerosene (hhK), and electricity. It highlights the immense fiscal burden on the government, with fuel subsidies alone estimated at over ₦2 trillion in 2011. The guide argues that these universal subsidies disproportionately benefit higher-income earners and are plagued by systemic corruption, such as inflated import claims and the diversion of kerosene to black markets. It also notes that under-pricing of energy has stifled investment in refining and power infrastructure, leading to high reliance on private generators and significant gas flaring. The document outlines the government's transition toward cost-reflective electricity tariffs via the Multi-Year Tariff Order (MYTO) and the attempted removal of gasoline subsidies through the SURE-P program, while providing international lessons on gradual price liberalization and targeted social compensation.
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Document type: Guide
A Citizens' Guide to Energy Subsidies in Nigeria
The document examines the economic and social impacts of fuel and electricity subsidies in Nigeria, noting that fuel subsidies in 2011 exceeded NGN 2.19 trillion but primarily benefited the wealthy and fostered corruption. It highlights that under-pricing electricity between 2005-2009 cost between NGN 232.5-356.5 billion, leading to poor infrastructure maintenance and reliability issues. The guide aims to inform citizens about these costs and the necessity of reforms, such as gradual tariff increases for electricity and the removal of gasoline subsidies.
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Document type: Guide
San Giorgio Group Case Study: Ouarzazate I CSP
The Ouarzazate I CSP project in Morocco utilizes a public-private partnership (PPP) model and significant concessional financing from international financial institutions (IFIs) to overcome the commercial unviability of CSP technology. The project is designed as the first phase of a larger portfolio to drive down costs and eventually enable renewable energy exports to the European Union. Key success factors include the creation of the Moroccan Agency for Solar Energy (MASEN), strong donor coordination, and a risk-sharing framework that allocates operational risks to private developers and revenue risks to the public sector.
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Document type: Case study
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
Fossil-Fuel Subsidy Reform in India
The report examines the high cost of petroleum subsidies in India, specifically for domestic LPG and PDS kerosene, and proposes a transition to direct cash transfers. It highlights significant under-recoveries for oil marketing companies and systemic leakages in the Public Distribution System (PDS). The authors recommend short-term measures such as capping subsidized LPG cylinders and conducting more pilot studies, while proposing long-term reforms including improved BPL surveys, increased financial inclusion, and calibrated price decontrol.
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Document type: Report
Policy options: regional summary
The document identifies freshwater, climate change, and environmental governance as universal priorities across regions. It highlights that successful policies—such as the removal of fossil fuel subsidies and integrated water resources management—rely on robust governance structures, multi-stakeholder participation, and the addressing of underlying drivers of degradation. The text emphasizes the importance of transboundary cooperation and the potential for successful policies to leverage societal transformation toward sustainable development objectives.
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Document type: Report
San Giorgio Group Case Study: Prosol Tunisia
The Prosol program (2005-2010) successfully scaled the deployment of solar water heaters in Tunisia by combining capital subsidies, concessional credit, and a unique risk-mitigation framework. By leveraging the state utility STEG as a debt collector and guarantor, the program reduced credit risk for commercial banks, leading to a 1:5 public-to-private investment ratio. The initiative not only increased installed capacity fivefold but also generated significant fiscal returns for the Tunisian government by reducing expenditures on liquefied petroleum gas (LPG) subsidies.
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Document type: Case study
Energy equity: can the UN Sustainable Energy for All initiative make a difference?
The Green Economy Coalition supports the UN's Sustainable Energy for All (SE4ALL) initiative but argues it requires more ambition and a specific focus on energy equity. The authors contend that universal energy access is a prerequisite for achieving Millennium Development Goals, particularly in health and education. They advocate for a strategy that prioritises the poorest, measures success through development outcomes rather than infrastructure metrics, and promotes community-led stewardship of local resources. While acknowledging the role of the private sector, the document emphasizes that reaching the most impoverished will require significant public sector and NGO involvement, as 'base of the pyramid' business models often overlook the absolute poorest.
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Document type: Statement
Fossil-Fuel Subsidy Reform: Building momentum at Rio and beyond
The document details a side event focused on the economic, social, and environmental imperatives of reforming fossil-fuel subsidies. It highlights the fiscal burden of these subsidies, which totaled an estimated US$409 billion in consumption subsidies in 2010, and their role in increasing greenhouse gas emissions. The report presents case studies from Ethiopia, Costa Rica, and Sweden to illustrate different reform trajectories and challenges. It advocates for a comprehensive reform strategy that includes targeted compensation for the poor, transparency, and specific commitments within the Rio+20 outcome document, including financial and technical assistance for developing countries.
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Document type: Report
Indonesia’s Fuel Subsidies: Action plan for reform
The report analyzes Indonesia's fuel subsidy regime, highlighting the fiscal burden of spending IDR 164.7 trillion (US$ 18.1 billion) in 2011. It evaluates the government's 2012 plans to restrict 'Premium' gasoline use and deploy CNG and LGV alternatives, while recommending a transition toward market-based pricing and improved public communication to mitigate social unrest.
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Document type: Report
Sources of finance in the international climate change regime
The briefing examines the funding gap for climate change in the global South, specifically Africa, where adaptation costs are projected to reach $30 to $60 billion annually by 2030. It evaluates several funding mechanisms—including direct budgetary contributions, shipping and aviation levies, financial transaction taxes, Special Drawing Rights (SDRs), the redirection of fossil fuel subsidies, and carbon taxes—against criteria for fairness, such as adequacy, predictability, and transparency. The document argues that public funding must be prioritized over private finance and carbon markets, which it claims are often biased toward profitable mitigation projects in middle-income countries and fail to provide meaningful support to the poorest African regions.
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Document type: Briefing
Will second wave environmentalism learn from the errors of the first wave?
The author argues that first-wave environmentalism failed because it lacked a convincing narrative on economic growth, failed to establish relative urgency against immediate poverty and debt crises, and remained isolated within environmental ministries. He evaluates the High Level Panel on Global Sustainability's report as a successful attempt to address these gaps through recommendations on green jobs, carbon pricing, and private sector engagement. However, he warns that the 'zero draft' for the Rio+20 outcome document remains largely aspirational and risks falling back into the 'environmental trap'.
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Document type: Report
Biofuels - At What Cost?
The document examines the economic implications of increasing the United Kingdom's biofuel blending mandate from 4-5 per cent to 10-15 per cent to comply with the EU's Renewable Energy Directive. It investigates various cost drivers, including government administration of the Renewable Transport Fuel Obligation, agricultural subsidies under the CAPs Single Payment Scheme, potential tax revenue losses from biofuel exemptions, and increased consumer prices and engine damage.
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Document type: Report
Obama Administration FY 2013 Budget Proposal: Sustainable Energy and Transportation
The Obama administration's FY 2013 budget proposal emphasizes an "all of the above" energy strategy, prioritizing renewable energy, energy efficiency, and infrastructure. Key funding increases are directed toward the Department of Energy's Office of Energy Efficiency and Renewable Energy, building technology research, and high-speed rail. The proposal also calls for the elimination of $4 billion in fossil fuel subsidies and a significant investment in surface transportation, funded by savings from reduced overseas military operations.
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Document type: Fact sheet
Following the Money: Fossil fuel subsidy reform en route from Durban to Rio+20
The document reports on a side event at the 17th Conference of the Parties to the UNFCCC in Durban, where delegates and experts discussed the economic and environmental benefits of phasing out fossil fuel subsidies. It highlights the disparity between the US$100 billion Green Climate Fund and the US$400–600 billion in annual global fossil fuel subsidies. The report details the activities of the 'Friends of Fossil Fuel Subsidy Reform' group, the challenges of political economy in implementing reforms, and proposals to integrate subsidy reform into Nationally Appropriate Mitigation Actions (NAMAs) and the Rio+20 conference.
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Document type: Report
Fossil Fuels – At What Cost?
The report identifies significant government support for Russia's upstream oil and gas sector, totaling US$8.1 billion in 2009 and US$14.4 billion in 2010. These subsidies, primarily in the form of tax holidays and export duty exemptions, are heavily skewed toward the development of new fields in frontier areas, particularly the Arctic, rather than improving recovery efficiency at existing fields. The study highlights the environmental risks associated with Arctic expansion and argues that reforming these subsidies is essential for decarbonizing the economy and meeting international commitments.
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Document type: Report