Phasing out fossil fuel subsidies in the G20: progress, challenges, and ways forward

The G20 has committed to phasing out inefficient fossil fuel subsidies. Such measures, intended to favour energy security or protect the poor from high fuel costs, encourage the extraction and wasteful consumption of fuels, undermine the competitiveness of renewable energy, and further aggravate climate change. Yet despite the G20 pledge and mandates under the 2030 Agenda and the Paris Agreement, reform has been slow. This paper analyses progress and challenges to implementing the G20’s commitment and outlines policy options for G20 policymakers, drawing upon the international trade framework as a means to overcome current implementation deadlocks.