The OECD has developed an inventory approach to measure government support for fossil fuels across 44 countries. The inventory documents close to 1200 support policies provided in the form of direct transfers, tax expenditures, revenue foregone, risk transfers, and induced transfers. In 2017, OECD and partner countries provided around $140 billion in support, down 40% from the 2013 peak. However, broader IEA-OECD estimates found a slight increase in global support to $340 billion in 2017. Going forward, the OECD aims to expand the inventory's coverage, measure risk transfer costs, study the impact of support, and phase out inefficient subsidies by 2030 as part of UN Sustainable Development Goals.

1. OECD’S WORK ON
GOVERNMENT
SUPPORT FOR FOSSIL
FUELS
Paris Collaborative on Green Budgeting
2nd Green Budgeting Experts Meeting, 29 April 2019
Assia Elgouacem, Economist, Environment Directorate

2. 2
The Inventory approach to measuring government
support for fossil fuels

3. 3
The Inventory approach to measuring government
support for fossil fuels – direct transfers

4. 4
The Inventory approach to measuring government
support for fossil fuels – tax revenue foregone

5. 5
The Inventory approach to measuring government
support for fossil fuels – other revenue foregone

6. 6
The Inventory approach to measuring government
support for fossil fuels – transfer of risk

7. 7
The Inventory approach to measuring government
support for fossil fuels – induced transfers

8. 8
The OECD Inventory 2019 – number of budgetary
programmes and tax provisions
The OECD Inventory covers 44 countries: 36 OECD member states and
8 partner economies. It documents close to 1200 individual government
policies.
0
50
100
150
200
250
direct transfers tax expenditures
Source: OECD Inventory of Support Measures for Fossil Fuels (2019), forthcoming.

9. OECD member states and partner economies provided around USD 140 billion
in support for fossil fuels in 2017, 40% lower than the highest level in 2013.
9
Support in OECD and selected partner economies
continues to decline …
0
50
100
150
200
250
2009 2010 2011 2012 2013 2014 2015 2016 2017
Billion (constant USD)
GSSE PSE CSE
Source: OECD Inventory of Support Measures for Fossil Fuels (2019), forthcoming.

10. 10
…but global IEA-OECD estimates indicate a slight
increase in government support in 2017
The combined estimate cover 76 economies responsible for more than 90%
of global carbon emissions. Total support stands at USD 340 billion in 2017.
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
2010 2011 2012 2013 2014 2015 2016 2017
Average import cost of
crude (constant USD)
Billion (constant USD) Coal Natural Gas Petroleum Price of Oil
Source: OECD Inventory of Support Measures for Fossil Fuels (2019), forthcoming; IEA World Energy Outlook, (2018)

11. 11
OECD participation in G20 work on inefficient
fossil-fuel subsidies

12. 12
OECD participation in G20 work on inefficient
fossil-fuel subsidies

13. • The SDG 12 include a target, 12.c., calling for the
phasing out of “inefficient fossil fuel subsidies that
contribute to wasteful consumption” by 2030.
• The OECD, in collaboration with the Global Subsidies
Initiative, produced a paper for UN Environment (the
“custodian” agency) on the scope and methods for
constructing the indicators.
• The methodology was peer reviewed and endorsed by
the UN Committee on Environmental Economic
Accounts (UNCEEA) in June 2018.
13
The OECD has scaled up efforts on SDGs

14. • Develop indicators of government support for fossil fuels that allow
for cross-country comparison.
• Extend Inventory coverage to main producers of fossil fuels.
• Measure the cost of risk transfer to the government for providing
credit assistance to fossil-fuel-related projects.
• Study the impact of government support to inform reform processes.
14
Next steps

15. Learn more:
– OECD support for fossil fuels: http://oe.cd/fossil-fuels
Contact the OECD Fossil Fuel Support Intelligence Unit:
– Nathalie Girouard, Head of Division, Environment Directorate,
nathalie.girouard@oecd.org
– Kurt Van Dender, Head of Unit, Centre for Tax Policy and
Administration, kurt.vandender@oecd.org
– Assia Elgouacem, Economist, Environment Directorate,
assia.elgouacem@oecd.org
15
Thank you!