5. Recommendations

• Global agreement in 2015 to phase out all fossil fuel subsidies by 2025 – led by a

phase-out in the G20 by 2020.

• International architecture to support common frameworks to measure fossil fuel


• International assistance to support the phase-out of fossil fuel subsidies in

developing countries.

• Data collection, sharing and analysis on subsidies and investment in climate

relevant sectors.

• Support for low-carbon investors through the incorporation of subsidies in rating


5.1 Global agreement on fossil

fuel subsidy phase-out

The current commitment of the G20 to phase

out inefficient fossil fuel subsidies should be

elevated to a global phase-out of all fossil fuel

subsidies by 2025, with G20 countries taking

a leadership position through a phase-out by


Such a commitment could be made in 2015

to align with the timing for new international

agreements on climate change under the

UNFCCC and on the Sustainable Development

Goals (SDGs). Significant progress has already

been made on other agreements on climate

in parallel to the UNFCCC negotiations (for

example through a recent agreement between

the US and China on methane-emission sources),

and a commitment to fossil fuel subsidy phaseout

by 2025 would take countries one step

closer to the 2-degree target.

As a ‘down-payment’ on a global phase-out,

the wealthiest G20 countries should make

an immediate commitment to phase out all

subsidies to coal and to oil and gas exploration

and production by 2015. Every G20 country

could also agree that they will develop a national

strategy on subsidy phase-out by 2014.

Such speedy action by the G20 countries would

reinforce the recommendations of the High-

Level Panel of Eminent Persons on the Post-

2015 Development Agenda (HLP) to phase out

inefficient fossil fuel subsidies that encourage

wasteful consumption (United Nations, 2013).

It would also reinforce the growing recognition

of the need to eliminate fossil fuel subsidies on

the part of such institutions as the European

Community, OECD, IMF and World Bank. And

it would build on the historic and current efforts

of countries to eliminate fossil fuel subsidies (see

Section 3).

Finally, it would tap into the momentum created

by the civil-society campaign at the Rio+20

Conference on Sustainable Development in 2012,

which called for governments to reach a global

agreement on the phase-out of fossil fuel subsidies.

20 time to change the game: subsidies and climate

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