Despite fossil fuels’ widely recognised responsibility for causing global climate change, many governments continue to massively support their production and consumption. Fossil fuel subsidies were estimated at almost US$ 500 billion in 2019.
This situation is all the more concerning when considering that on top of their well-known environmental impacts, fossil fuel subsidies can also have far-reaching social, economic, and trade consequences. They constitute a considerable burden on often scarce public funds, and can significantly distort competition in the market for renewable energy, thwarting the much-needed energy transition.
In light of its experience in negotiating and establishing multilateral rules on subsidies in different areas, the World Trade Organization would appear to be the forum of choice to tackle fossil fuel support measures. With an absence of WTO disputes on the issue and a notoriously low record of compliance with subsidy notification requirements, however, it currently remains unclear how useful a forum the WTO could be in fostering better transparency and effectively constraining government support to fossil fuels. Building on recent research in this area, this session will bring together perspectives from academia, civil society, government and intergovernmental organizations to explore whether the WTO is up to this timely and essential task.
Key questions:
- Can WTO rules be used, or reformed, to address fossil fuel subsidies more effectively?
- On what existing types of data could possible discussions on new disciplines rely, and how can potential data gaps be filled in?
- Are there efforts underway to ensure subsidy rules, including at the WTO, are aligned with the need to transition to cleaner energy systems?
In the second portion of the session, the floor will open for a moderated audience discussion guided by the question:
If the WTO is to better address fossil fuel subsidies, what could be a feasible and practical first step?
Continue the conversation in the dedicated chat on the Beyond Trade Network.
This session will be simultaneously translated into French, Spanish and English (when needed) via the Interactio application, by entering the code GTW2020 (please use headphones). Open the application in your Web browser or download it for iOS Mobile App or for Android App.