High Hopes for Fossil Fuel Subsidies Dashed at Rio+20

There were a number of hopes for Rio+20, and for a while it looked as though consensus and momentum was building toward a few key outcomes. While upgrading UNEP and coming to some agreement on protecting biodiversity on the high seas were high on the list, phasing out fossil fuel subsidies was perhaps at the top. Yet hopes for strong action on this crucial issue were dashed when the final negotiating text was released by the Brazilian hosts yesterday.

With the actual conference now reduced to little more than a show and tell session where countries beat the drum about their actions on sustainable development, the weakenened text on fossil fuel subsidies is here to stay. This is unfortunate because the text essentially requires states to do nothing.

The original negotiating document stated:

We recognize the need for further action to rationalize and phase out harmful and inefficient fossil fuel subsidies that encourage wasteful consumption and undermine sustainable development…

Whereas the text almost certainly to be adopted reads as follows:

Countries reaffirm the commitments they have made to phase out harmful and inefficient fossil fuel subsidies that encourage wasteful consumption and undermine sustainable development. We invite others to consider rationalizing inefficient fossil fuel subsidies…

This new wording achieves next to nothing, essentially stating that those states already phasing out such subsidies should carry on doing so, while inviting others  to join them, which obviously they won´t.

This text condemns taxpayers in developing countries to fund regressive subsidies that benefit only the wealthier members of society and oil companies, while valuable funds are diverted away from creating a clean energy future.