WT/MIN(17)/54  
 
12 December 2017  
(17-6850) Page: 1/2 
Ministerial Conference  
Eleventh Session  
Buenos Aires, 10 -13 December 2017  Original: English  
 
FOSSIL FUEL SUBSID IES REFORM MINISTERIA L STATEMENT  
 
The following communication, dated 11 December 2017, is being circulated at the request of the 
delegations of Chile; Costa Rica; Iceland; Liechtenstein; Mexico; the Republic of Moldova; 
New Zealand; Norway; Samoa; Switzerland; the Separate Customs Territor y of Taiwan, Penghu, 
Kinmen and Matsu; and Uruguay.  
 
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1. Recogni zing that fossil fuel subsidies encourage wasteful consumption, disadvantage 
renewable energy, and depress investment in energy efficiency, and that effectively addressing 
fossil fuel subsidies will deliver trade, economic, social and environmental benefits;  
2. Recalling  our Leaders ' commitment to fossil fuel subsidy reform under the Sustainable 
Development Goal 12 (c) of the 2030 Agenda, and recognising that a growing number of WTO 
Members have made further pledges under the auspices of the G20, G7, APEC and V20, and in the 
context of the Paris Agreement on Climate Change and the Addis Ababa Action Agenda on 
Financing for Development;  
3. Recogni zing that subsidies for fossil fuels were estimated at USD 425 billion in 2015, and that 
fossil fuel subsidies amounted to 20  per cent of the value of internationally traded fuels ; 
4. Recogni zing that a phase -out of fossil -fuel subsidies would generate an estimated 12  percent 
of the total abatement needed by 2020 from energy sector emissions and action towards holding 
the increase in global average temperature below 2°C above pre -industrial levels , and would 
contribute to the pursuit of efforts to limit the temperature increase to 1.5 °C above pre -industrial 
levels;  
5. Acknowledging  that reforming fossil fuel subsidies can release funds for other development 
priorities ; 
6. Acknowledging  that accelerating  the reform of fossil fuel subsidies is therefore a priority;  
7. Considering  that trade has been explicitly identified as a powerful enabling force that is 
indispensable in progress toward sustainable development;  
8. Recogni zing that sustainable development is a  fundamental principle of the Marrakesh 
Agreement establishing the World Trade Organization;  
9. Acknowledging  that the trade and investment distortions caused by fossil fuel subsidies 
reinforce the need for global action including  at the World Trade Organizat ion;  
10. Confirming , therefore, that the World Trade Organization can play a central role in achieving 
effective disciplines on inefficient fossil fuel subsidies;  
We have accordingly reached the following shared understandings:  
 
 We seek the rationalisation and phase out of inefficient fossil fuel subsidies that encourage 
wasteful consumption, and encourage the international community to join us in those 
efforts;  
 WT/MIN(17)/54  
 
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   We recognise that reform needs to take fully into account the speci fic needs and conditions 
of developing countries and minimize the possible adverse impacts on their 
development  in a manner that protects the poor and the affected communities;  
 
 We seek to advance discussion in the World Trade Organization aimed at achieving 
ambitious and effective disciplines on inefficient fossil fuel subsidies that encourage 
wasteful consumption, including through enhanced World Trade Organization transparency 
and reporting that will enable the evaluation of the trade and resource  effects of fossil fuel 
subsidies programmes.  
 
Buenos Aires, December 2017  
 
 
 
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