WT/MIN(21)/9/Rev.1  
 
14 December  2021 
(21-9323) Page: 1/2 
 Original: English  
 
 
MINISTERIAL STATEMENT ON FOSSIL FUEL SUBSIDIES  
Revision  
The following communication, dated 14 December  2021, is being circulated at the request of the 
delegations of Albania; Chile; Costa Rica ; European Union ; Fiji; Iceland ; Liechtenstein ; Moldova , 
Republic of ; Montenegro; New Zealand ; North Macedonia;  Norway ; Panama; Switzerland ; Tonga; 
United Kingdom;  Uruguay; and Vanuatu . 
 
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We, the Ministers representing the following Members of the World Trade Organization (WTO): 
Albania; Chile; Costa Rica ; European Union ; Fiji; Iceland ; Liechtenstein ; Moldova , Republic of ; 
Montenegro ; New Zealand ; North Macedonia;  Norway ; Panama ; Switzerlan d; Tonga ; 
United  Kingdom ; Uruguay ; and Vanuatu  issue this statement:  
 
1. Recognizing  that inefficient 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 as 
well as release government funds to support a green and climate -resilient COVID -19 recovery;  
2. Recalling  our Leaders' commitment to fossil fuel subsidy reform under the Sustainable 
Development Goal 12 (c) of the 2030 Agenda, and recogni zing that  a growing number of World 
Trade Organization (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 Developmen t; 
3. Recognizing  that subsidies have continued to steadily increase in the past decade and were 
estimated at approximately USD 500 billion in 2019, and diverting funding from such subsidies will 
support a just transition towards a green, sustainable economy;  
4. Recognizing  that a phase  out of fossil  fuel subsidies would effectively contribute to the Paris 
Agreement objective of holding the increase in global average temperature below 2°C above 
pre-industrial levels, and would continue towards pursuing efforts to limit the temperature increase 
to 1.5 °C above pre -industrial levels and will deliver lower climate -related global risks as outlined by 
the 2018 Intergovernmental Panel on Climate Change Special Report on Global Warming of 1.5°C;  
5. Further recogni zing the significant potential for a fossil  fuel subsidy phase  out to support the 
Paris Agreement goal of making public financial contributions consistent with a pathway towards low 
greenhouse gas emissions and climate -resilient development;  
6. Acknowledging  that accelerating the reform of fossil fuel subsidies is therefore more urgent 
than ever; 
7. Considering  that sustainable development is a fundamental principle of the Marrakesh 
Agreement establishing the World Trade Organization  and that trade has been expl icitly identified 
as a powerful enabling force that is indispensable in progress toward sustainable development ; WT/MIN(21)/9/Rev.1  
 
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  8. Confirming , therefore, that the World Trade Organization can play a central role in the 
reduction of trade and investment distortions caused by fossil fuel subsidies by achieving effective 
disciplines on inefficient  fossil fuel subsidies;  
We have accordingly reached  the following shared understandings:  
• We seek the rationali zation and phase out of inefficient fossil fuel subsidies that 
encourage wasteful consumption along a clear timeline and encourage the remaining 
WTO Members to join us in those efforts, recogni zing the substantial financial resource 
this could unlock globally to support the transition;  
• We recogni ze that reform needs to take fully into account the specific 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 will share information and experiences 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, economic, and environment effects of fossil fuel subsidy programmes;  
• We will elabor ate concrete options to advance this issue at the World Trade Organization 
in advance of MC13.  
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