The report, titled “Inventory of estimated budgetary support and tax expenditures for fossil fuels," is the first of its kind, inventorying 24 countries that together account for 95% of the OECD's primary energy supply, of which petroleum made up approximately 54%.
The report discusses not only the subsidies themselves, but trends and examples of good practice in reforming subsidy systems.
4 October 2011: The International Energy Agency (IEA) and the Organisation for Economic Co-operation and Development (OECD) have jointly released a publication titled “Inventory of estimated budgetary support and tax expenditures for fossil fuels,” which highlights the need to reform fossil-fuel subsidies to improve the economy and environment.
The report is the first of its kind, inventorying 24 countries that account for 95% of the OECD’s primary energy supply, of which petroleum made up approximately 54%. The report discusses not only the subsidies themselves, but trends and examples of good practice in reforming subsidy systems.
The report highlights that approximately US$500 billion dollars were paid out in 2010 to subsidize fossil fuel production and consumption. It stresses that, although in many countries such subsidies are designed to assist the poor, they often fail to meet these goals and instead encourage excess consumption, reduce energy security, impede investment in clean energy, and undermine efforts to deal with climate change challenges. OECD Secretary-General Angel Gurria said phase-outs were also possible in such situations, stressing the need for “well-targeted, transparent and timebound programmes to assist poor households and energy workers who might be adversely affected in the short-term.” [IEA Press Release] [OECD Press Release] [Publication: Inventory of Estimated Budgetary Support and Tax Expenditures for Fossil Fuels]