The Context of Fossil-Fuel Subsidies in the GCC Region and Their Impact on Renewable Energy Development
This discussion paper looks at fossil-fuel pricing and subsidies in the political, social and economic context of Gulf Cooperation Council (GCC) countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
It provides an overview of IEA and IMF estimates of fossil-fuel subsidies in GCC countries, as well as additional GSI price-gap calculations on subsidies for gasoline and diesel used as transport fuels and electricity generation. The paper then analyzes the impact that fossil-fuel subsidies have on renewable energy development in the region. It finds that even partial reform of fossil-fuel subsidies would assist GCC countries in meeting their economic, fiscal, social and environmental objectives, but that political opposition to increased energy prices is a key barrier to change.
Participating experts
You might also be interested in
Saudi Arabia's grandiose climate plans struggle to take off
When Crown Prince Mohammed bin Salman announced Saudi Arabia’s "green initiative" this year he did so with the type of eye-catching pledge that has come to characterise the young royal's grandiose plans to modernise the kingdom.
Energy Pricing Reforms in the Gulf: A trend but not (yet) a norm
This GSI paper summarizes recent fossil fuel subsidy reforms in the Gulf countries of Bahrain, Kuwait, Oman, Saudi Arabia, United Arab Emirates and Qatar, putting them in the context of wider developmental challenges and calling for more focused international support to energy pricing reforms in the region.
COP 29 Must Deliver on Last Year’s Historic Energy Transition Pact
At COP 29 in Baku, countries must build on what was achieved at COP 28 and clarify what tripling renewables and transitioning away from fossil fuels means in practice.
How Indonesia's Incoming President Can Advance the Transition to Clean Energy
With Prabowo Subianto inaugurated as Indonesia’s President, speculation abounds about the new administration’s commitment to the clean energy transition and climate targets, given Prabowo’s positioning as the “continuity candidate.” The question is, what, exactly, will be continued?