The First Year of the G-20 Commitment on Fossil-Fuel Subsidies: A Commentary on Lessons Learned and the Path Forward

Abstract

In September 2009, the G-20 announced a medium-term commitment to phase out fossil-fuel subsidies that encourage wasteful consumption, distort markets, impede investments in clean energy sources and undermine efforts to address climate change. Since that announcement, there has been a flurry of activity leading to a growing international movement to remove harmful fossil-fuel subsidies. But the task of phasing out these subsidies is challenging and takes time. Much remains to be done by the G-20 to fulfil their medium-term commitment, including monitoring the phase-out of subsidies identified for reform. The GSI offers a commentary on the first year of the G-20’s commitment and the actions of other governments and organizations that have contributed to the reform movement, including the Asia Pacific Economic Cooperation (APEC) forum and the Friends of Fossil-Fuel Subsidy Reform group of countries. It identifies lessons that can be learned and looks ahead at what further progress the G-20 and international community can make to enhance global and national efforts to reduce fossil-fuel subsidies.