Developing countries require financial resources to address climate change, reduce greenhouse gas emissions, and promote adaptation, but they often lack funding. Developed countries have pledged to provide climate finance to developing countries, but support is slow to arrive. Fossil fuel subsidy reform could help developing countries unlock a large amount of funding to support climate mitigation and adaptation, but this will require shifting financing away from fossil fuels and toward a just energy transition.
In 2009, G20 members committed to phasing out and rationalizing fossil fuel subsidies in the medium term. As of 2022, fossil fuel subsidies have not been phased out; instead, they exceeded USD 1 trillion globally for the first time—largely due to governments’ increased subsidies to cushion consumers from rising energy prices.
This official Civil 20 (C20) side event discusses the challenges and opportunities of reforming fossil fuel subsidies for different G20 members. It looks at options for generating new and additional sources of climate finance and for ensuring social and climate justice. The webinar includes input from speakers from Argentina, Brazil, India, Japan, and South Africa.
