Redirecting fossil fuel subsidies to renewable energy and clean transport is a widely supported policy goal, but achieving it is far more complex than many assume, according to a new analysis by Ronald Steenblik, Senior Technical Advisor at the Quaker United Nations Office.
The analysis notes that despite nearly two decades of international commitments to phase out inefficient fossil fuel subsidies, progress has remained slow due to political, economic and social challenges.
While many governments and international organizations advocate shifting these subsidies to renewable energy, there are no binding global rules requiring countries to allocate savings from subsidy reforms to clean energy investments.
The report highlights that, based on the methodology used for the UN Sustainable Development Goals (SDG 12.c.1), global fossil fuel subsidies averaged about USD 1.1 trillion annually between 2021 and 2024.
Much of this support comes through controlled domestic fuel prices and tax concessions rather than direct government spending.
