This analysis highlights a number of key pathways within the Paris Agreement that governments can use to support the phase out of fossil fuel subsidies.
There is much to celebrate with the early entry into force of the Paris climate agreement, which sets a clear signal that we are nearing the end of the fossil fuel era. Nonetheless, after the celebrations, the real work will begin.
Governments must now take the essential step of phasing out subsidies and public finance to harmful fossil fuels. Taking steps to end public subsidies for high carbon energy is critical for meeting one of the key goals of the Paris Agreement: ‘making financial flows consistent with a pathway towards low greenhouse gas emissions and climate resilient development’.
By utilising the Paris Agreement as a clear framework for action on subsidies, it will be possible to achieve a sustainable transition to clean and low carbon energy systems. This will liberate resources to support wider social needs, as well as benefit our economies and natural environments.