Colombia announced it was joining the FFSR initiative⁽¹⁾, noting that the elimination and redirection of fossil fuel subsidies to other social programmes was a priority for its government. Colombia saw the FFSR initiative as an ideal space to discuss the transition to green energy and invited concrete action from all countries.

On the social and development dimensions, presentations were made by the International Institute for Sustainable Development, United Nations Conference on Trade and Development, and United Nations Development Programme.  The organizations highlighted their research and policy work covering the economic and social analysis of the distributional effects of fossil fuel subsidies; particular issues and policy choices for developing members in undertaking fossil fuel subsidy reform; and resources available to developing members to support this, as well as wider green transformation efforts.  The discussion included options to design and target support programmes more effectively to achieve social and economic development objectives. It also identified building global partnerships and including FFSR as part of a larger package of energy security and green recovery measures as important for successful reform.

Presentations from the European Union and Costa Rica provided valuable information and insights into their experience in designing programmes to support their green transition and decarbonisation efforts, while addressing the needs of vulnerable social groups and working to achieve broader environmental and development objectives.

Updates were also provided on relevant developments from the United Nations COP27 climate conference held in Sharm el-Sheikh, Egypt, in November 2022 and the January 2023 launch of the Coalition of Trade Ministers on Climate.  The Coalition, which comprises so far over 20 countries, aims to focus on how trade policy can support climate action.

Members discussed next steps for the group's work.   The coordinator, Ambassador Clare Kelly of New Zealand,  identified three action points in summing up the discussions: first, work to understand better the extent and design of  temporary measures introduced in response to the current energy crisis and to consider  best practice approaches for monitoring and roll back of such measures; second, a paper by the WTO Secretariat to compile and help establish a better understanding of the current landscape on fossil fuel subsidies, including their use by sector, purpose, and impacts (both environment and trade); third, efforts to increase transparency on FFSR by utilising existing WTO mechanisms, such as Trade Policy Reviews.

The FFSR initiative will meet again before the summer break in August, and once more in the autumn.   “This will set us up well to deliver on the objective for MC13, including to elaborate concrete options for advancing this issue at the WTO, as set out in our June 2022 Ministerial Statement,” Ambassador Kelly said.

1. The 48 FFSR co-sponsors are Albania; Chile; Colombia, Costa Rica; the European Union (and 27 member states); Fiji; Iceland; Liechtenstein; Moldova, Republic of; Montenegro; New Zealand; North Macedonia; Norway; Panama; Paraguay; Samoa; Switzerland; Tonga; United Kingdom; Uruguay; and Vanuatu. back to text