TTIP and Fossil Fuel Subsidies: Using international policy processes as entry points for reform in the EU and the USA

TTIP and Fossil Fuel Subsidies: Using international policy processes as entry points for reform in the EU and the USA

TTIP and Fossil Fuel Subsidies
Apr 03, 2014 by Constanze Adolf, Jacqueline Cottrell, Amani Joas, Claudia Schulz
Heinrich Böll Stiftung
pdf
Date of Publication: March 2014
Number of Pages: 37
License: All rights reserved.

TTIP Series

TTIP and Fossil Fuel Subsidies: Using international policy processes as entry points for reform in the EU and the USA

In this report, we assess the potential of three relatively promising international processes – the focus on fossil fuel subsidy (FFS) reform in the G20 group, the Sustainable Development Goals (SDGs), and the Transatlantic Trade and Investment Partnership (TTIP) – to act as possible routes to reform in a transatlantic context.


Phasing out fossil fuels on both sides of the Atlantic would:

  • create stronger price signals in favour of energy efficiency and low-carbon innovation;
  • internalise at least some of the costs of FFS and thus reduce market distortions;
  • bring about a shift towards low-carbon enerfy and thus boost employment in the renewable energy sector;
  • bring about GHG emissions reductions in the US and the EU;
  • could contribute to reducing budget deficits with the least possible negative impact on growth and employment.

Within the TTIP process, a possible model for reform could be:

  1. Get FFS reform on the negotiation agenda, e.g. through the TTIP Advisory Group
  2. Agree national reporting processes - develop a detailed template for all countries to identify and quantify FFS within a transparent framework;
  3. Cost-benefit analysis of FFS reform, estimate distributional impacts;
  4. Develop a coherent reform policy on the basis of 2 and 3;
  5. Build support with a good communications strategy and disseminate information about pricing reforms before they are introduced;
  6. Set up an independent body to assess progress and deal with legal questions.

 

 
 
 
 

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