Analysis of the Scope of Energy Subsidies and Suggestions for the G-20 Initiative

Abstract

When the G-20 leaders met on 24-25
 September 2009 in Pittsburgh, USA, they agreed in their
 Communiqué that, building on the efforts of many countries
 to, reduce fossil fuel subsidies while preventing adverse
 impact on the poorest?, they were committed to, rationalize
 and phase out over the medium term inefficient fossil fuel
 subsidies that encourage wasteful consumption. This draft
 report has been developed jointly by the International
 Energy Agency (IEA), Organization of the Petroleum Exporting
 Countries (OPEC), Organization for Economic Cooperation and
 Development (OECD) and World Bank in response to this
 request. It draws on the relevant expertise and work of the
 four tasked organizations, but also on input and comments
 from other organizations and experts. The report includes:
 a) discussion of the scope of energy subsidies; b) estimates
 of energy subsidies, and identification of the gaps in the
 existing data and issues around the measurement of energy
 subsidies; c) modeling-based analysis of the implications of
 phasing-out energy subsidies on the economy, including
 socio-economic and trade impacts, the environment, and the
 energy sector; and d) suggestions for the implementation of
 phase-out of inefficient subsidies leading to wasteful
 consumption, drawing on country case studies, including
 discussion of how to address social impacts.