Increasing the Momentum of Fossil-Fuel Subsidy Reform

Increasing the Momentum of Fossil-Fuel Subsidy Reform
Author: Kerryn Lang
Publisher:
Total Pages: 0
Release: 2010
Genre:
ISBN:

As fossil-fuel subsidy reform moves higher up countries' energy and climate change agendas - the G-20 and APEC have recently taken commitments to phase out fossil-fuel subsidies, countries such as Indonesia, India and Iran are attempting to reduce their subsidy burden, and organizations like the OECD, IEA, World Bank and IMF are refocusing on the topic - there remains the question: what role can international fora such as the WTO, UNFCCC, and international collaboration more generally, play? International collaboration and agreement can provide essential support to national efforts to reform fossil-fuel subsidies. In addition to supplying political legitimacy and peer pressure, it can also offer research and technical assistance, sharing of information and best practice, establishment of rules, financial support and promoting increased accountability. The WTO (World Trade Organisation), with its Agreement on Subsidies and Countervailing Measures, would seem to be the obvious first choice. However much work needs to be done prior to introducing new negotiations to the WTO - gathering information, building consensus, and in the case of energy subsidies, obtaining a mandate to negotiate disciplines that reach beyond the trade impacts. Immediate action could see improvements to WTO members' reporting on subsidies, however with the Doha Round seemingly at a stand-still, the outlook for negotiations on fossil-fuel subsidy disciplines can only viably be a longer-term goal. The good news is there are other opportunities that can and should be taken advantage of in the meantime. Fossil-fuel subsidy reform is one national action that could have significant and multi-faceted impacts for addressing global climate change - driving down emissions and opening investment pathways for renewable energies. The UNFCCC may be struggling to define its post-Kyoto architecture but there is nothing stopping it from recommending specific non-binding measures that developed countries should take, with clear attractions compared to making a whole new agreement. Discussions around developing countries all suggest that their commitments are likely to based around their policies. Whether these are defined as nationally appropriate mitigation actions (NAMAs) or otherwise, subsidy reform seems a perfect fit and could be supported technically or financially by the developed world. The UNFCCC might be moving slowly towards a full agreement but we could envisage quick progress on more specific, voluntary actions, potentially even in the build-up to Cancun this December. The G-20 and APEC are already leading the way, having taken commitments to phase out and rationalize inefficient fossil-fuel subsidies that encourage wasteful consumption. The G-20 lacks a secretariat for supporting ongoing research and technical assistance, or monitoring progress on the phase out of members' subsidies, however APEC may be able to fill some of these functions for its members. Country champions are picking up the torch with a newly-formed Friends of Fossil-Fuel Subsidy Reform group, led by New Zealand which includes Denmark, Norway, Sweden and Switzerland, with membership from developing countries still to be confirmed. As momentum for national fossil-fuel subsidy reform picks up, countries will look increasingly to the international community for support. This paper takes a detailed look at the opportunities, strengths and weaknesses of progressing fossil-fuel subsidy reform within the WTO, UNFCCC and under the G-20's political leadership, and concludes that a collaborative approach between a range of organisations is needed, with country champions driving the process. The paper outlines a roadmap over the next 12 months, 1-3 years and the longer term for increasing international cooperation, and preparing the path to a multilateral agreement on fossil-fuel subsidy reform.

Increasing the momentum of fossil-fuel subsidy reform

Increasing the momentum of fossil-fuel subsidy reform
Author:
Publisher:
Total Pages: 0
Release: 2010
Genre:
ISBN:

Although systemic, prompt and deep action on fossil-fuel subsidies by the WTO is not seen as a priority among its membership, especially in the face of the slow progress of the Doha Round negotiations and the current financial crisis, trade-related responses to climate change are increasingly seen as part of the future WTO agenda. [...] The low rates of notifications, the lateness in submitting reports and the problems with the accuracy and completeness of reported data have been attributed to one main shortcoming of the 10 Increasing the Momentum of Fossil-Fuel Subsidy Reform: A Roadmap for international cooperation transparency framework under the SCM Agreement. [...] In addition to the negotiations on fish subsidies, there have been some proposals to extend the existing disciplines of the SCM Agreement, namely by the United States and the EC. [...] A significant obstacle to bringing a complaint before the Dispute Settlement Body, or even in requesting consultations, is the burden of proof that is placed on the complaining member to demonstrate the existence and nature of the subsidy (Articles 4.2 and 7.1). [...] The United States proposed to expand the categories of prohibited subsidies and the EC proposed to improve members' abilities to address the adverse impacts of subsidies.

Fit for Purpose?: Toward trade rules that support fossil fuel subsidy reform and the clean energy transition

Fit for Purpose?: Toward trade rules that support fossil fuel subsidy reform and the clean energy transition
Author: van Asselt, Harro
Publisher: Nordic Council of Ministers
Total Pages: 60
Release: 2020-11-18
Genre: Business & Economics
ISBN: 9289368098

Available online: https://pub.norden.org/temanord2020-539/ Estimated at USD 478 billion in 2019, fossil fuel subsidies strain the public purse, contribute to climate change, slow the uptake of renewable energy, and lead to local air pollution and associated impacts on public health. Their reform could thus lead to a wide range of socioeconomic and environmental benefits. Despite its binding rules to regulate subsidies, the World Trade Organization (WTO) has so far failed to play any significant role in constraining government support to fossil fuels. Against this backdrop, this report explores whether WTO rules and practices are fit for purpose in addressing fossil fuels subsidies and supporting the clean energy transition, and how they could be reformed to more effectively contribute to these key objectives. It also offers practical recommendations for WTO members and other stakeholders interested in moving this agenda forward.

The Politics of Fossil Fuel Subsidies and Their Reform

The Politics of Fossil Fuel Subsidies and Their Reform
Author: Jakob Skovgaard
Publisher: Cambridge University Press
Total Pages: 349
Release: 2018-08-23
Genre: Business & Economics
ISBN: 1108416799

This comprehensive volume provides the first book-length account on the politics of fossil fuel subsidies. This title is also available as Open Access.

Subsidy Reform in the Middle East and North Africa

Subsidy Reform in the Middle East and North Africa
Author: Mr.Carlo A Sdralevich
Publisher: International Monetary Fund
Total Pages: 130
Release: 2014-07-09
Genre: Business & Economics
ISBN: 1498350437

In the Middle East and North Africa (MENA) countries price subsidies are common, especially on food and fuels. However, these are neither well targeted nor cost effective as a social protection tool, often benefiting mainly the better off instead of the poor and vulnerable. This paper explores the challenges of replacing generalized price subsidies with more equitable social safety net instruments, including the short-term inflationary effects, and describes the features of successful subsidy reforms.

The Palgrave Handbook of the International Political Economy of Energy

The Palgrave Handbook of the International Political Economy of Energy
Author: Thijs Van de Graaf
Publisher: Springer
Total Pages: 755
Release: 2016-08-05
Genre: Political Science
ISBN: 1137556315

This Handbook is the first volume to analyse the International Political Economy, the who-gets-what-when-and-how, of global energy. Divided into five sections, it features 28 contributions that deal with energy institutions, trade, transitions, conflict and justice. The chapters span a wide range of energy technologies and markets - including oil and gas, biofuels, carbon capture and storage, nuclear, and electricity - and it cuts across the domestic-international divide. Long-standing issues in the IPE of energy such as the role of OPEC and the ‘resource curse’ are combined with emerging issues such as fossil fuel subsidies and carbon markets. IPE perspectives are interwoven with insights from studies on governance, transitions, security, and political ecology. The Handbook serves as a potent reminder that energy systems are as inherently political and economic as they are technical or technological, and demonstrates that the field of IPE has much to offer to studies of the changing world of energy.