18 February 2014
Nordic Council Assesses Options for Fossil Fuel Subsidy Reform
UN Photo/Kibae Park
story highlights

The Nordic Council of Ministers has published a paper titled 'Nordic Cooperation on fossil-fuel subsidy reform in developing countries: Assessing Options and Opportunities,' which outlines how development partners can work together to end fossil fuel subsidies in developing countries.

Nordic Council Logo10 February 2014: The Nordic Council of Ministers has published a paper, titled ‘Nordic Cooperation on fossil-fuel subsidy reform in developing countries: Assessing Options and Opportunities,’ which outlines how development partners can work together to end fossil fuel subsidies in developing countries.

Authored by Laura Merrill of the International Institute for Sustainable Development (IISD), the paper begins by noting that fossil fuel subsidies amounted to US$544 billion in 2012, and that their reform globally is key to combating global climate change the enabling broader sustainable development. The paper goes on to outline options for Nordic countries to work together with countries in the Middle East and North Africa (MENA) and Southeast Asian regions, where subsidies are most intense, to remove them.

These suggestions include: using international carbon mitigation schemes to incentivize reforms; developing an energy subsidy network of excellence that provides both information and technical assistance; supporting development of reform-supported social safety nets for the poor; and urging international financial institutions in developing options to support fossil fuel subsidy phase-outs. [Publication: Nordic Cooperation on Fossil-fuel Subsidy Reform in Developing Countries: Assessing Options and Opportunities] [Norden Website]