OECD Companion to the Inventory of Support Measures for Fossil Fuels 2015

image of OECD Companion to the Inventory of Support Measures for Fossil Fuels 2015

This publication is concerned with all policies that directly support the production or consumption of fossil fuels in OECD countries and in a selection of partner economies. It provides a useful complement to the online OECD database that identifies and estimates direct budgetary transfers and tax expenditures benefitting fossil fuels, and from which it derives summary results and indicators on support to fossil fuels, as well as policy recommendations.

This report emphasises the problems that fossil-fuel subsidies cause in the context of broader policy efforts for mitigating greenhouse-gas emissions, and reviews the various reform initiatives that have already been taken at the international level (G-20, APEC, etc.). In addition, it presents the coverage, method and data sources used for constructing the online database, and further discusses caveats and data interpretation.

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Tracking progress in reforming support for fossil fuels

This final chapter uses the data compiled for the 2015 edition of the OECD Inventory to derive a few results and indicators on the magnitude and nature of support for fossil fuels in OECD countries and the selected partner economies. The first section looks at broad trends in aggregate support and relates the observed evolution to recent policy changes and reforms. Section 3.2 looks at the characteristics of individual support measures to better understand the way support is provided to producers and consumers. Section 3.3 puts consumer support in perspective by assessing it in the broader context of countries’ energy taxation. Finally, section 3.4 concludes by suggesting that further action be taken by policy makers to continue reforming measures that support fossil fuels.

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