Fossil-fuel subsidies and low carbon development: Summary sheet
This document contains summary sheet of low carbon development and fossil fuel subsidies. Inefficient fossil-fuel subsidies hinder economic growth and low carbon development as they encourage wasteful consumption, distort markets and impede investment in clean energy sources. Furthermore, fossil-fuel subsidies are inappropriate for addressing poverty as, in most cases, higher income households benefit to a larger extent than poor households. Therefore, phasing out fossil-fuel subsidies presents a triple-win solution - it could contribute to enhance energy security, reduce greenhouse gas (GHG) emissions and result in economic growth.
The report presents the case study of Indonesia. The country has a long history of directly subsidising energy to support poor households.