1887

Making the Switch

From fossil fuel subsidies to sustainable energy

image of Making the Switch

This report estimates fossil fuel subsidies to be around USD 425 billion. Such subsidies represent large lost opportunities for governments to invest in renewable energy, energy efficiency and sustainable development. Removal of subsidies can lead to carbon emission reductions (6 to 8 per cent by 2050 globally), Reductions that can be improved further with a switch or a "SWAP" towards sustainable energy. This report describes the scale and impact of fossil fuel subsidies on sustainable development. It describes the SWAP concept to switch savings made from fossil fuel subsidy reform, towards sustainable energy, energy efficiency and safety nets. The report provides potential SWAP outlines for Bangladesh, Indonesia, Morocco and Zambia. "Making the Switch" was written for the Nordic Council Ministers by the Global Subsidies Initiative of IISD and Gaia Consulting.

English

.

Making the Switch

Energy and fuel switching is not a new concept. Consumers switch between energy companies. Those cooking in the household switch between gas and electricity or between charcoal and kerosene for cooking. Motorists switch from gasoline to electric cars, or from gasoline to diesel cars and fuels. Even investors switch. The divestment campaign where private and institutional investors shift investment assets away from fossil fuel companies is a marketplace example. What this paper outlines is a similar switch in government expenditure and policy. But it is actually more than a switch – or tinkering with a stacking model, whereby households use a mix of fuels to deliver energy needs – what is needed is a SWAP. In other words, a direct act of exchanging one type of energy source subsidies for another. A SWAP requires not only switching off the carbon subsidies that flow to fossil fuels but a parallel switching on of active support and investment into renewable and energy efficiency services. A SWAP is where countries implement fossil fuel subsidy reform and allocate some savings from reform toward sustainable energy and development.

English

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error