The United Kingdom, New Zealand, and Colombia Join Coalition to Phase Out Fossil Fuel Subsidies

November 19, 2024, Baku, Azerbaijan-Today on the sidelines of the UN Climate Conference in Baku (COP 29), the United Kingdom, New Zealand, and Colombia joined the international Coalition on Phasing Out Fossil Fuel Incentives Including Subsidies (COFFIS).

COFFIS is a coalition of governments working together to remove barriers and facilitate transparency toward the phase-out of fossil fuel subsidies.

It now has 16 member countries, including Austria, the federal government of Antigua and Barbuda, Belgium, Canada, Colombia, Costa Rica, Denmark, Finland, France, Ireland, Luxemburg, the Netherlands, New Zealand, Spain, Switzerland, and the United Kingdom.

Ed Miliband, the UK Energy Secretary, said:

"Our mission is to make the UK a clean energy superpower, getting off the rollercoaster of international fossil fuels and switching to homegrown energy in the hands of the British people.

"By joining the Coalition on Phasing Out Fossil Fuel Incentives Including Subsidies, we are showing the UK is back in the climate business and committed to working with partners to tackle this generational crisis."

Simon Watts, Minister for Climate Change of New Zealand, said:

"New Zealand is proud to join this joint statement on Fossil Fuel Subsidies and its implementing Coalition on phasing out Fossil Fuel Incentives including Subsidies. This important initiative fits well with New Zealand's leadership of the Friends of Fossil Fuel Subsidy Reform Group and our role as Chair of the recently signed Agreement on Climate Change Trade and Sustainability."

Patricia Fuller, President and CEO, International Institute for Sustainable Development (IISD) said:

"We warmly welcome Colombia and the United Kingdom as new members of the COFFIS coalition. Shifting public financial flows from fossil fuels to clean energy will be critical to implement the COP 28 decision to transition away from fossil fuels. These subsidies reached a record USD 1.5 trillion in in 2022 and COFFIS members have taken the decision to phase out fossil fuel subsidies in a transparent manner. As a secretariat of the coalition, IISD will continue to promote global best practice in fossil fuel subsidies phase out and support its members in reaching this objective. We also continue to look to expand the coalition and anticipate more countries to join soon."

World governments have previously pledged to phase out inefficient fossil fuel subsidies-including the G20 members in 2009 and all parties to the UNFCCC at COP 26 in Glasgow in 2021. However, the implementation of these commitments has been slow, with subsidies globally reaching a record USD 1.5 trillion in 2022.

COFFIS, launched by the Netherlands at COP 28 in Dubai, was established to accelerate the phase-out of domestic fossil fuel subsidies and encourage international cooperation to help maintain a level playing field between countries.

Removing fossil fuel subsidies remains a key piece of the puzzle in achieving the global commitment to transition away from fossil fuels, adopted by parties at COP 28 in Dubai. Phasing out this support would not only increase the fiscal space in national budgets to finance the clean energy transition and support social issues, but also create a level playing field between fossil fuels and clean energy.

COFFIS members are focusing their work around three pillars:

1. Transparency: Increasing transparency by producing an overview of their fossil fuel subsidies. As part of these efforts, the first member countries have produced their fossil fuel subsidy inventories, which are available here.
2. International agreements: Identifying and addressing international barriers to phasing out fossil subsidies, such as restricting taxation on aviation and shipping fuels.
3. National action: Developing national strategies for phasing out fossil fuel subsidies.

By signing up to COFFIS, member countries commit to two concrete actions: publish an inventory of their fossil fuel subsidies a year after joining, and then start developing national action plans for phasing out fossil fuel subsidies. This approach helps translate international commitments on phasing out fossil fuel subsidies into specific national actions to remove this support.

Media Contacts

Aia Brnic, Communications Manager, IISD (COFFIS Secretariat): [email protected], +41787634546

Pieter ten Bruggencate, Senior Spokesman Climate & Energy, Ministry of Economic Affairs and Climate, the Netherlands: [email protected]

COFFIS website: https://www.iisd.org/coffis/

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