Just a few weeks back, for my master’s class of Economic Interdependence, Environmental Sustainability and Development Cooperation together with Omari Revazishvili I discussed the Global Fossil Fuel Subsidies Reform & the case of the COFFIS alliance – Coalition on Phasing Out Fossil Fuel Incentives Including Subsidies.
In this article, I will summarize the key points from our presentation. First, I’ll explain what Fossil Fuel Subsidies (FFS) are, followed by an overview of international discussions on FFS reform. I will then examine the case of civil society, in specific Extinction Rebellion NL, how it pressured the Dutch government to establish and lead the COFFIS alliance. Finally, I’ll conclude with actionable steps you can take to influence this reform process.
Fossil Fuel Subsidies – What are they?
According to the International Energy Agency (IEA) Fossil fuel consumption subsidies rose to an all time high in 2022 with over 1 trillion USD spent globally. This is a staggering amount of money that could have been used for a just transition, climate adaptation and trying to avert or soften the impending climate collapse. The absurd part is that we are still spending huge amounts globally (see graph below). Now even more as Trump took the reign of the biggest economy of the world.
What makes this topic even more complex (and frustrating) is that there is no common definition of what fossil fuel subsidies are, still the World Trade Organization, OECD – OCDE and the IEA do stick to a specific line: “subsidies are either a financial contribution by government OR any form of income/price support that confers a benefit.” However, the International Monetary Fund takes a different approach and makes a distinction between explicit and implicit subsidies (which I’m not going to explain here, as a whole other article is required for this). That is why the IMF in 2023 published a report stating that Fossil Fuel Subsidies Ssurged to a record $7 Trillion. Mind boggling amounts that could be used differently.
Below a clear outline of the different FFS definitions
G7 & G20 | Promises of fossil fuel subsidies reforms |
You might think that this topic is new and only recently discussed, however it is over 15 years that States have been pledging to phase out of FFS. In fact the G20 promised this for the first time at the Pittsburg summit of 2009 to phase out of “inefficient” fossil fuel subsidies. Calling all countries to phase them out. Just a bit later, at the Aquila Summit the G7 promised the phase out of “inefficient” fossil fuel subsidies every year since 2009, specifying a 2025 timeline in 2016.
15 years later, the G20 and G7 failed to phase out fossil fuel subsidies due to non-binding commitments, political and economic pressures, and vague policies. Many pledges were symbolic, made under soft law with no enforcement. Furthermore, energy security concerns and conflicting national interests further stalled progress, making these summits around the issue more about public relations than real action.
Civil Society’s Role in Accelerating the Reform Process
The topic has been lacking public interest (at least in here in Europe), but this changed in 2023 in the Netherlands. Extinction Rebellion NL started in 2021 their first protests against Fossil Fuel Subsidies at the Ministry of Environment of the Netherlands in The Hague. To then later scale up mass protests on the A12 highway in The Hague. These protests made national headline news and this prompted civil society and NGOs like SOMO, Oil Change International and Friends of the Earth International NL to further deep dive in the numbers of FFS.
At the start of 2020 the Netherlands’ Finance Ministry estimated that the Netherlands spent only €4.5 billion in FFS, however that number was way lower than reality. In fact, the SOMO report published in September of 2023 stated that those numbers were almost 10 times bigger: about €37,5 billion. This led the Ministry of Climate and Finance to recalculate and come back a week later with new numbers: in the Netherlands FFS are between €39,7 and €46,4 billion a year. Higher than what was estimated by civil society. This brought public upheaval and Extinction Rebellion NL blocked the A12 Highway for 27 days straight demanding an end to fossil subsidies.
The marathon blockade, which ended in October 2023, led to a significant victory: the Dutch parliament voted by a broad majority in favor of a motion to develop scenario-based plans for phasing out fossil fuel subsidies. However, this was not a direct commitment to ending subsidies but rather an exploratory step. Even so, it helped clarify what qualifies as a fossil fuel subsidy and how the Dutch government defines them. Following this, Dutch Climate Minister Rob Jetten took further action at COP 28 in the UAE (2023), where he launched the COFFIS alliance to advance global FFS reform.
COFFIS was launched at COP28UAE
The COFFIS alliance – Coalition on Phasing Out Fossil Fuel Incentives Including Subsidies – set its goal to eliminate fossil fuel subsidies, improve transparency, and tackle international barriers to subsidy reform. 13 countries joined at the COP 28 UAE and 3 more joined at COP29, you can see the member countries in the image below. The International Institute for Sustainable Development serves as its secretariat, supporting efforts to ensure global cooperation and accountability.
COFFIS initial goals were to:
- Publish detailed subsidy overviews before COP 29 in 2024. (partially failed)
- Developing a standardized methodology for tracking subsidies. (work in progress)
- Addressing challenges in aviation, maritime transport, and other sectors. (work in progress)
A year later from its inception, only five nations have met this commitment, leaving seven lagging behind (Antigua and Barbuda, Canada, Costa Rica, Denmark, Finland, Luxembourg, and Spain). Publishing an inventory is just the start. Real action means clear phase-out plans by COP30 and a decisive shift away from fossil fuel subsidies toward renewable energy. If you live in one the 16 member states, reach out to your local and national climate justice groups to further pressure your government to commit to their promises. 2025 is the year to turn promises into progress.
2025 the year of ending Fossil Fuel Subsidies
Ok, so globally there is the COFFIS alliance, but if you are based in Europe, what can you do?
In theory, under the 8th Environmental Action Programme (2022) the EU aims to eliminate harmful subsidies by 2025, but is has made little to no progress. In fact, the recent Study on energy subsidies and other government interventions in the European Union by Enerdata shows that in 2024 the subsidies disbursed across the EU have decreased. BUT (yes, there is a but), they are still too high and need to stop.
That is why in October of last year, together with United For Climate Justice we sent an open letter to the European Commission, European Parliament, Council of the European Union to demand:
1. A timeline for a full phase out of fossil fuel subsidies by 2025.
2. Adopt a comprehensive methodological guidance for member states
3. Be Transparent and Accountable
It is essential that we continue pressuring the EU and the COFFIS alliance to phase out of fossil fuel subsidies as soon as possible. Joining civil society efforts to push lagging governments to publish their subsidy inventories can lead to take real steps towards reform.
Let’s make 2025 the year that Fossil Fuel Subsidies were a thing of the past!
You can sign our petition here -> https://www.change.org/stop-fossil-subsidies
Our open Letter: https://urgentletter.eu
More info on our Stop Fossil Subsidies campaign: https://stopfossilsubsidies.eu
And here you can read our most recent article: https://stopfossilsubsidies.eu/eu-fossil-fuel-subsidies-remain-high-amid-transparency-issues/
#StopFossil #StopFossilSubsidies