The recent announcement by the Leaders of the Group of Twenty (G-20), who met 24-25 September, 2009 in Pittsburgh, PA, finally gives recognition to the opportunity represented by fossil-fuel subsidy reform: to save money at the same time as reducing carbon dioxide and other harmful emissions. But there is much more to implementing reform than political statements and off-the-shelf solutions.
This Policy Brief explores what G-20 countries need to do in order to follow through on their announcement. First, it is necessary to quantify fossil-fuel subsidies with standardized and regular reporting and an international framework for monitoring them. Then, effective reform measures will require clear objectives and timeframes; rigorous and thorough research to identify subsidies and evaluate their effects; a coherent package of policies; a communications strategy combined with extensive consultation with stakeholders; and a process for reviewing progress towards reform.
In short, a lot of hard work remains to be done.
