On 24 May 2018 (2:00 PM-6:00PM CET), the International Centre for Trade and Sustainable Development (ICTSD) is hosting the Reforming Fossil Fuel Subsidies for Climate Mitigation: What Trade Policy Options? in Geneva, Switzerland.
With the adoption of the Paris Agreement and the 2030 Agenda for Sustainable Development, the international community has demonstrated its resolve to commit to a more sustainable future. To make progress towards this end, policies need to be streamlined in accordance with the objective of sustainable development. One policy area which currently stands in stark contrast to this objective relates to the subsidisation of fossil fuels. These subsidies do not only harm the environment, but also depress growth, reinforce inequality, add to health hazards and slow down the energy transition. The need to reform and ultimately phase them out is thus urgent.
The WTO could play an important role in this regard. Its binding nature and mechanism for enforcement and compliance might allow for the necessary shift from best-endeavour pledges to actual implementation. While the trade system has relevant tools in place for addressing subsidies, including mechanisms for notification and for review, a subsidy agreement as well as sectoral agreements applying to subsidies, these need to be upgraded to better respond to the challenges of the 21st century, including climate change. The recent ministerial statement on fossil fuel subsidies issued by 12 countries during MC11 is a first step in this direction.
This event aims to demonstrate the urgency of tackling fossil fuel subsidies and discuss several reform options which could be considered by the trade system. The dialogue will consist of two sessions. The first will showcase impacts of fossil fuel subsidies on climate change, health and the energy transition. The second session will make the case for using the trade system to address fossil fuel subsidies and discuss potential options to this end.
The event will take place at the Domaine de Penthes, Chemin de l'Impératrice 18, 1292 Pregny-Chambésy (Geneve), Switzerland.