Three Nations Join Global Push to Abandon Fossil Fuel Subsidies
At the U.N. Climate Conference in Baku (COP 29), the United Kingdom, New Zealand, and Colombia announced their commitment to phasing out environmentally harmful fossil fuel subsidies. The three countries joined the Coalition on Phasing Out Fossil Fuel Incentives Including Subsidies (COFFIS), a growing international alliance dedicated to reducing reliance on fossil fuels.
This move highlights a significant shift in global policy toward tackling climate change. Fossil fuel subsidies, long criticized for hindering the transition to cleaner energy sources, have been a major target for reform in recent years.
The decision by the U.K., New Zealand, and Colombia underlines the growing international consensus on the need to act decisively on climate change.
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These subsidies distort markets, prop up polluting industries, and undermine efforts to build a sustainable future,” a joint statement by the three countries read. “By phasing them out, we can unlock investments in renewable energy, create green jobs, and safeguard our planet for future generations.”
The announcement comes at a critical juncture, as the world grapples with the escalating consequences of climate change.
Extreme weather events, rising sea levels, and biodiversity loss are increasingly prevalent reminders of the urgent need for action. Phasing out fossil fuel subsidies is seen as a crucial step towards achieving the goals of the Paris Agreement, which aims to limit global warming to well below 2 degrees Celsius.
COFFIS, launched in 2021, has now garnered the support of over 30 countries, representing a diverse range of economies and regions. The coalition aims to provide a platform for sharing best practices, coordinating policy initiatives, and holding each other accountable for progress.
The U.K., New Zealand, and Colombia join a growing list of nations taking proactive steps to reduce their dependence on fossil fuels.
The European Union has been a leader in phasing out coal subsidies, while several Asian countries are investing heavily in renewable energy.
The momentum for change is building.
The move by the three countries is expected to send a strong signal to other nations, encouraging them to follow suit.
By demonstrating that phasing out fossil fuel subsidies is both feasible and beneficial, COFFIS members hope to accelerate the global transition to a clean energy future.
There are, however, significant challenges ahead. The fossil fuel industry remains powerful and influential, often lobbying against policy changes that threaten its economic interests.
Overcoming this resistance will require strong political will and a commitment to prioritizing long-term environmental sustainability over short-term economic gains.
The success of COFFIS will ultimately depend on the collective efforts of its member countries, working together to create a more sustainable and equitable energy future for all.
What are the potential economic consequences of phasing out fossil fuel subsidies, both positive and negative?
## Interview: Fossil Fuel Subsidies Phased Out
**Host:** We’re joined today by Dr. Anya Sharma, an expert on climate policy and international development. Dr. Sharma, three nations have just joined a growing coalition to phase out fossil fuel subsidies. Can you tell us what this means and why it’s such a big deal?
**Dr. Sharma:** Absolutely. This is a significant step forward in the fight against climate change. As we learned from the Resilience article [[1](https://www.resilience.org/stories/2024-11-13/countries-spend-huge-sums-on-fossil-fuel-subsidies-why-theyre-so-hard-to-eliminate/)], fossil fuel subsidies are a major obstacle to transitioning towards cleaner energy sources. They artificially lower the price of fossil fuels, making them more attractive to consumers and businesses despite their harmful environmental impacts.
The UK, New Zealand, and Colombia joining this coalition, COFFIS, signals a growing international recognition that these subsidies need to go. It’s a bold move, and hopefully, it will encourage other countries to follow suit.
**Host:** What are the potential benefits of phasing out these subsidies?
**Dr. Sharma:** The benefits are multiple. Firstly, it would level the playing field for renewable energy sources, making them more competitive. Secondly, eliminating subsidies would free up government resources that could be directed towards supporting the development of cleaner alternatives. phasing out subsidies sends a strong message to markets and investors that the world is serious about transitioning to a low-carbon economy. This can attract essential investments in green technologies and create new job opportunities in the renewable energy sector.
**Host:** What challenges do you anticipate in achieving this goal?
**Dr. Sharma:** Phasing out subsidies is a complex process that can face political resistance from powerful industries that benefit from the status quo.
There will also be concerns about the potential for short-term economic disruption, especially in regions heavily reliant on fossil fuels. However, by implementing phased-out approaches
and investing in social safety nets, governments can mitigate these risks and ensure a just transition to a more sustainable future.
**Host:** Thank you, Dr. Sharma, for sharing your insights on this important topic.
