IISD Welcomes Transparency on Fossil Fuel Subsidies by China and the United States

[下面中国版.] GENEVA—September 19, 2016—Today China and the United States released voluntary peer reviews of their fossil fuel subsidies. The two countries are the first among G20 members to undertake peer reviews of their fossil fuel subsidies as part of the G20 commitment “to phase out inefficient fossil fuel subsidies that encourage wasteful consumption.” 

The peer review process starts with the preparation of a “self-review” report to identify, measure and evaluate fossil fuel subsidies. This report is then reviewed by a peer review panel. The panel for China included Germany, Indonesia, United States and the International Monetary Fund. The United States report was reviewed by China, Germany and Mexico. The Organisation for Economic Co-operation and Development chaired the process and also peer reviewed both reports. 

“The United States and China—the two largest economies in the G20—are to be congratulated for their leadership,” said Peter Wooders, Director of IISD’s Energy Program. “This gesture of openness signals a genuine desire to remove subsidies that are both environmentally and economically harmful. I hope the peer reviews encourage other G20 members to talk openly about their fossil fuel subsidies and develop plans for phase out.”  

G20 peer reviews include inventories of fossil fuel subsidies, an evaluation of their effects and costs, and plans that countries have made to phase out those considered “inefficient” and which “encourage wasteful consumption."   

The published review for the United States lists 17 subsidies of the total value of US$ 8.2 billion. The review for China lists 9 subsidies worth US$ 14.5 billion. China’s peer review report is notable for also including a reform plan and timeline, identifying subsidies for phase-out in the near future. This sets an example for other G20 nations. 

“It is encouraging to see that the reviews list both consumption and production subsidies, encompassing the many forms of budgetary transfers, tax breaks and regulatory privileges that can encourage wasteful use of energy,” said Richard Bridle, Research Officer with the IISD Global Subsidies Initiative. 

Unfortunately, the G20 leaders have not been able to agree a definitive timeline for the phase out of all inefficient fossil fuel subsidies, despite mounting pressure to do so. Ahead of the G20 leaders’ summit earlier this month, more than 200 NGOs from 45 countries and a group of insurers with US$ 1.2 trillion under management urged G20 leaders to phase out subsidies for fossil fuels by 2020.

“Although the time is running short, the G20 leaders still have a chance to meet these expectations and set a timeline for reform under next year’s G20 presidency by Germany,” said Wooders.
 
The United States and China peer review documents are available here:

For more information on IISD’s work on fossil fuel subsidies, visit the website of our Global Subsidies Initiative www.iisd.org/gsi 
 

国际可持续发展研究院(IISD)欢迎中国和美国在G20峰会公开化石能源补贴,并再次呼吁设立行动时间表

中国和美国于2016年9月19号公布了在G20框架下自愿性同行评审化石能源补贴的结果。这两个国家率先在G20 成员国中开展同行评审，确定他们认为可以取消的化石能源补贴以及各自已有的取消化石能源补贴的方案。

中美同行评审基于2009年G20领导人的承诺：“取消没有效率的鼓励浪费性消费的化石能源补贴。”中美两国的同行评议首先准备“自我评估报告”以辨别、量化和评估相关的补贴内容。然后，自我评估报告交给专家组进行同行审议。中国的评审专家组由德国、印度尼西亚、美国和国际货币基金组织的专家组成，美国的评估报告由上述除了国际货币基金组织以外的相同专家，再加上中国的专家组成的评审组审议。两份报告的评估过程均由经济合作和发展组织任评审组的主席。自我评估报告以及同行专家组评估报告可在G20官方网站上获取(