Introduction

Fossil-fuel subsidies are environmentally harmful, costly, and distortive. Not only do they undermine global efforts to mitigate climate change, but they also aggravate local pollution problems, causing further damage to human health and the environment. They represent a considerable strain on public budgets, draining scarce fiscal resources that could be invested in sustainable energy infrastructure, research and job training. Many governments, including members of the G20 and of the Asia-Pacific Economic Cooperation (APEC) forum, recognise the problems that fossil-fuel subsidies cause at home and abroad. In 2009, member governments of both fora committed to “rationalise and phase out over the medium term inefficient fossil fuel subsidies that encourage wasteful consumption.” A number of countries have since translated those commitments into concrete policy actions and removed some of the subsidies they had in place. However, lack of information about the scope, magnitude, and effects of fossil-fuel subsidies remains an important obstacle to current and future reform efforts.

To help governments spur reform, the OECD produces and maintains an online Inventory of Support Measures for Fossil Fuels, which systematically identifies, documents, and estimates the value of individual policy measures encouraging the production or consumption of fossil fuels.

The OECD’s 2020 Inventory documents over 1 300 government budgetary transfers and tax expenditures providing support for fossil fuel producers and consumers in 50 OECD, G20 and European Union (EU) Eastern Partnership (EaP) countries.

These country notes complement the country-level data contained in the Inventory. They provide, for each country, an overview of energy resources and market structure, a short description of energy prices and taxes, and a discussion of recent trends and developments in support measures.

Interactive graphics enable data visualisation, in national currency, by beneficiary and by energy product.

Disclaimers

This work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of OECD member countries.

This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.

The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law.

Note by Turkey
The information in this document with reference to “Cyprus” relates to the southern part of the Island. There is no single authority representing both Turkish and Greek Cypriot people on the Island. Turkey recognises the Turkish Republic of Northern Cyprus (TRNC). Until a lasting and equitable solution is found within the context of the United Nations, Turkey shall preserve its position concerning the “Cyprus issue”.

Note by all the European Union Member States of the OECD and the European Union
The Republic of Cyprus is recognised by all members of the United Nations with the exception of Turkey. The information in this document relates to the area under the effective control of the Government of the Republic of Cyprus.

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