WT/MIN(24)/19  
 
26 February 2024  
(24-1703) Page: 1/6 
Ministerial Conference  
Thirteenth Session  
Abu Dhabi, 26 -29 February 2024  Original: English  
 
 
MINISTERIAL STATEMENT ON FOSSIL FUEL SUBSIDIES  
The following communication, dated 26 February 2024, is being circulated at the request of the 
delegations of Albania; Chile; Colombia; Costa Rica; European Union; Fiji; Iceland; Liechtenstein; 
Moldova, Republic of; Montenegro; New Zealand; North Macedonia; Norway; Panama; Paraguay; 
Samoa; Switzerland; Tonga; United Kingdom; Uruguay; and Vanuatu . 
 
_______________  
 
 
We, the Ministers representing the following Members of the World Trade Organization (WTO): 
Albania; Chile; Colombia; Costa Rica; European Union; Fiji; Iceland; Liechtenstein; 
Moldova,  Republic of; Montenegro; New Zealand; North Macedonia; Norway; Panama ; Paraguay; 
Samoa; Switzerland; Tonga; United Kingdom; Uruguay ; and  Vanuatu  issue this statement:  
 
1. Recalling our commitments  to fossil fuel subsidy reform under Sustainable Development 
Goal 12(c) of the 2030 Agenda, and in the context of the Paris Agreement on Climate Change and 
the Addis Ababa Action Agenda on Financing for Development;  
2. Recalling  that the September 2023 SDG  Summit reaffirmed climate change as one of the 
greatest challenges of our time, and expressed deep concern that all countries, particularly 
developing countries, are vulnerable to its adverse effects; as well as marking a new phase of 
accelerated progress  towards achievement of the SDGs,  including through efforts to ensure access 
to affordable, reliable, sustainable and modern energy for all;  
3. Acknowledging the need for deep, rapid and sustained reductions in greenhouse gas emissions 
to limit global war ming to 1.5°C identified at the 28th Conference of the Parties  to the UNFCCC , and 
the call on Parties to transition away from fossil fuels in energy systems, in a just, orderly and 
equitable manner, accelerating action in this critical decade, so as to ach ieve net  zero by 2050 in 
keeping with the science;  
4. Deeply concerned  about the recent substantial increase in government support for fossil fuels, 
which almost doubl ed in 2022  during the energy crisis , to reach more than USD 1.4 trillion1; 
 
5. Highlighting  the important contribution phasing out  inefficient fossil fuel subsidies that do not 
address energy poverty or just transitions, as soon as possible, can make to the objectives of the 
Paris Agreement on Climate Change, as well as to continued efforts to limit the temperature increase 
to 1.5 degrees above pre -industrial levels and lower global climate -related risks, significantly 
reducing the risks and impacts of climate change;  
 
6. Recognising  further the role fossil fuel subsidy reform can play in delivering wider trade, 
economic, social and environmental benefits, including promoting more energy -efficient 
consumption, reducing pollution, and freeing up government funds to support a green and 
climate -resilient economy;  
 
7. Underscoring  the u rgency of fossil fuel subsidy reform in support of the COP28 objective s, 
including work at the national and international level to this end;  
 
1 Joint OECD -IEA estimate, OECD Inventory of Support Measures for Fossil Fuels 2023, published 
December 2023.  WT/MIN(24)/19  
 
- 2 - 
 
  8. Taking note  of the recent reaffirmation by members of the G20 of their intention to increase 
efforts to impleme nt their 2009 Pittsburgh commitment to phase  out inefficient fossil fuel subsidies, 
while providing targeted support for the poorest and most vulnerable;  
 
9. Considering that the WTO founding agreement, the Marrakesh Agreement, recognises 
sustainable devel opment as a fundamental principle, and that trade has been identified as a powerful 
enabling force for progress towards sustainable development;  
 
10. Reaffirming  paragraph 14 of the MC12 Outcome Document setting out the important 
contribution the multilate ral trading system has to make in promoting the UN 2030 Agenda and its 
SDGs,  especially in the context of global environment challenges such as climate change and related 
natural disasters, loss of biodiversity and pollution;   
 
11. Building  on the analytic al work and constructive discussions held under the WTO Fossil Fuel 
Subsidy Reform Initiative in the period since the 12th WTO Ministerial Conference;  
 
Decide as follows:  
 
• We will work to achieve the rationalisation, phase out or elimination of harmful fos sil fuel 
subsidies, including through use of existing mechanisms or the development of new pathways 
to reform, as appropriate, in the following three pillars:  
• A: Enhanced Transparency;  
• B: Crisis Support Measures; and  
• C: Identifying  and Addressing Harmful F ossil Fuel Subsidies;  
 
• We adopt the attached programme of work outlining concrete options under these three pillars 
to guide this work in the period to the 14th WTO Ministerial Conference  (Annex 1) ; 
• We will lead by example in providing and encouraging further transparency and awareness of  
fossil fuel subsidies and their reform through regular WTO processes;  
• To this end, we note the non-exhaustive list of sample  questions on fossil fuel subsidies and 
fossil fuel subsidy reform that has been d eveloped, and intend to use these when engaging 
with other WTO Members, including in WTO Trade Policy Reviews  (Annex 2) ; 
• We will work together to share experience and lessons from temporary measures adopted in 
response to the recent energy crisis, reviewin g progress in reducing, removing and/or refining 
the targeting of such temporary crisis measures, as well as to develop guidelines to help make 
any future such measures targeted, transparent and temporary;  
• We will advance work to identify harmful fossil fu el subsidies and to build broader recognition 
and support for the development of pathways to reform, reduce and eliminate these fossil fuel 
subsidies, considering the social impact, in particular on vulnerable groups;  and 
• We will take fully into account in all aspects of the WTO FFSR Initiative work programme 
consideration  of the particular needs and circumstances of developing countries, and the 
identification of approaches to address them in the adoption and implementation of fossil fuel 
subsidy  reform; as well as to minimise possible impacts and address essential energy needs 
of vulnerable groups, particularly in developing countries.   
_______________  
 
  
  WT/MIN(24)/19  
 
- 3 - ANNEX 1  
WTO FOSSIL FUEL SUBSIDY REFORM INITIATIVE: NEXT STEPS ON CONCRETE OPTIONS  
Focus Pillar  Products/Deliverables  Specific Action Steps  Time frame  
A. Enhanced 
Transparency  (i) Develop short list of sample questions on  fossil 
fuel subsidies and fossil fuel subsidy reform for 
regular use in WTO Trade Policy Reviews.  Co-sponsors to prepare short non -exhaustive list of sample 
questions.  End 2023 / 
MC13  
 (ii) Advocate incorporation of regular section in TPR 
Secretariat and Government reports covering fossil 
fuel subsidies and fossil fuel subsidy reform  efforts, 
in a single, readily identifiable place in TPR reports.  Co-sponsors lead by example in including this information in 
their own TPR reports (in an identified section of the report).  
 
Co-sponsors and other interested Members propose this, and 
champion it as part of the 8th appraisal of the TPR mechanism 
(in a section that might also cover wider trade and environment 
matters).  As TPRs arise  
 
2024/2025  
 (iii) Propose, support and contribute to a Com mittee 
on Trade and Environment 'thematic session' that 
includes fossil fuel subsidies and fossil fuel subsidy 
reform, to increase visibility of the issue across WTO 
bodies.  Co-sponsors to advocate as part of current efforts to revitalise 
the work of the C ommittee on Trade and Environment.  Session held 
2024 
 (iv) Use of other WTO mechanisms to increase 
transparency.  Request Secretariat extend their work on TPR information to 
compile information from other sources (e.g. information 
provided in Committee on Trade and Environment).  
 
Secretariat to provide periodic compilation of latest information 
available from joint international  organizations ' Subsid y 
Platform; as well as from other international organi zations and 
processes, e.g. UNEP, OECD, G2 0, APEC.  Two update 
reports  
2024/2025  
 (v) Broaden base of stakeholder input.  Consultations with stakeholders, including affected economic 
actors, including MSMEs.  By MC14  
B. Crisis Support 
Measures  (i) Compile information on Member experience with 
the design, review, adjustment and roll -back of 
temporary fossil fuel support measures to address 
energy crises.  Secretariat and co-sponsors to put together a paper with 
information on the design, review, evolution and removal of 
crisis support measures. O pportunity for other interested 
Members to also engage in this work and to draw on relevant 
compilations of information on crisis support measures in the 
OECD, APEC etc.  Q2 2024   
  WT/MIN(24)/19  
 
- 4 - Focus Pillar  Products/Deliverables  Specific Action Steps  Time frame  
 (ii) Develop guidelines to give effect to the 'Three Ts' 
principles for such  measures: i.e. targeted, 
transparent and temporary.  Co-sponsors and other interested Members to draft a short, 
practical set of guidelines reflecting Member experience and 
informed by research and best practice guidance developed by 
relevant international  organi zations.  Guidelines 
prepared in 
2024 
 (iii) Monitor and encourage reduction and removal of 
temporary fossil fuel support measures adopted to 
address recent energy crisis.  Schedule periodic review of Members' temporary crisis support 
measures and e fforts to reform, reduce and remove these.  1st session: Q3 
2024; 2nd 
session: 2025  
C. Address Most 
Harmful Fossil 
Fuel Subsidies  (i) Identify characteristics of those fossil fuel 
subsidies that are most harmful to the environment 
and to trade.  Co-sponsors to review studies by OECD, UNEP, IMF, IISD etc . 
on identification of categories of fossil fuel subsidies most 
harmful to the environment and to trade.  
 
Request additional Secretariat analysis of specific types, 
situations or sectors affected b y fossil fuel subsidies, e.g. those 
benefitting fossil fuel production, the plastics industry, to help 
inform this work.  
 
Begin to develop a grid of key types of fossil fuel subsidies, 
including situations and sectors in which fossil fuel subsidies are 
used, as well as the criteria by which they rank in harm to the 
environment and trade.  Calendar year 
2024 
 (ii) Build broader recognition and support for the 
development of pathways to reform, reduce and 
eliminate those fossil fuel subsidies recognised as 
harmful to the environment and to trade.  Schedule workshops to examine particular types of fossil fuel 
subsidies, including by sector and/or situation in which they are 
used. Document the volume, impacts, trends and alternatives to 
these subsidies.  
 
Dedicate d session on experience sharing among Members on 
approaches to fossil fuel subsidy reform, including 
complementary strategies and alternative approaches to 
address the needs of vulnerable social groups for a just 
transition and wider development objectives . Prepare 
compilation of success stories and learnings from Member 
experience and international advisory and funding agencies 
(e.g. UNDP , UNEP , World Bank).  
 Workshops in 
2024 
 
 
 
2024 meeting 
on design of 
reform policies  
 
 
 
 
  
  WT/MIN(24)/19  
 
- 5 - Focus Pillar  Products/Deliverables  Specific Action Steps  Time frame  
Identify existing and additional new pathways to reform, reduce 
and eliminate fossil fuel subsidies of this type or in use in these 
situations , including complementary strategies and approaches 
to help support vulnerable social groups and the development 
objectives of developing countries.  2024 meeting 
on pathways to 
action  
 (iii) Map out phased reduction pathways on these 
most harmful types of subsidies.  Co-sponsors and other interested Members to map out phased 
reduction pathways of particular types of fossil fuel subsidies 
identified as harmful.  
 
Co-sponsors and other interested Members to work on the 
development of a timetable for phased reduction pathways on 
these particular types of fossil fuel subsidies for possible pledges 
at MC14. Approaches to this transitio n that address social and 
development concerns to be explored alongside such reduction 
commitments.  2024/2025  
 
 
 
2025 and at 
MC14  
 
_______________  
 
 
 
 
 
 
 
 
 
 WT/MIN(24)/19  
 
- 6 - 
 
  ANNEX 2  
PROPOSED NON -EXHAUSTIVE LIST OF SAMPLE QUESTIONS ON  
FOSSIL FUEL SUBSIDIES AND FOSSIL FUEL SUBSIDY REFORM  
FOR REGULAR USE IN WTO TRADE POLICY REVIEWS  
As part of efforts to promote enhanced transparency in relation to fossil fuel subsidies and fossil fuel 
subsidy reform, the co-sponsors of the WTO Fossil Fuel Subsidy Reform Initiative have developed 
the following non -exhaustive list of sample questions.  They are intended for use, on a voluntary 
basis, to guide the preparation of information for and engagement with other Members on these 
issues in WTO Trade Policy Reviews.   
 
Information about the nature, extent, design and implementation of foss il fuel subsidy 
measures  
1. Noting the commitment made to fossil fuel subsidy reform under SDG 12(c) of the UN 2030 
Agenda, could [WTO Member under review] please provide information about the nature, 
extent, design and implementation of any programmes or sc hemes, existing or under 
consideration, that support the production or consumption of fossil fuels?1 [Where 
information is provided, but is incomplete: could [WTO Member under review] please provide 
more information about the [nature], [extent], [design] or [implementation] of the 
programmes or schemes that support the production or consumption of fossil fuels discussed 
in [the Member's TPR report], or any others that may be under consideration? ] 
 
2. What was [WTO Member under review]'s response to the 2021 e nergy crisis in terms of 
temporary measures that support the production or consumption of fossil fuels?  
 
Information about current and planned reforms of fossil fuel subsidy measures  
3. How is [WTO Member under review] implementing commitments to accelerate efforts to 
rationalize and phase out harmful fossil fuel subsidies agreed at recent UNFCCC COPs and 
in line with UN Sustainable Development Goal 12(c)?  For G20 Members: What steps has 
[WTO Member under review] undertaken to abide by its G20 commitment to phase out 
inefficient fossil fuel subsidies, and what steps are being considered or introduced to 
implement this phase -out? [If information about FFSR has been provided:  could [WTO 
Member under review] please provide more details about its experiences with reforming and 
phasing out programmes supporting the production or consumption of fossil fuels? ] 
 
4. What steps has [WTO Member under review] taken to phase out any temporary measures 
in support of the production or consumption of fossil fu els adopted in response to the 2021 
energy crisis?  
 
Information about economic, social and environmental impacts of fossil fuel subsidy 
measures  
5. [impact]  Has [WTO Member under review] undertaken recent analysis of the economic, 
social and environmental im pacts of  fossil fuel subsidies  it applies and what have been the 
findings?  
 
6. [cost/budget] Could [WTO Member under review] please provide information on the 
impact of  fossil fuel subsidies  on the actual costs paid domestically for fuel and on the 
government 's budget?   
 
7. [vulnerable groups] In the context of fossil fuel subsidy reforms, what actions are being 
taken to mitigate the effects on vulnerable groups?  
 
 
__________  
 
1 For example, this could include, inter alia , direct spending, price support, tax exemptions or risk 
transfers.