Supporting fossil-fuel subsidy reform in Bangladesh, India and Indonesia

Three new reports build on the International Institute for Sustainable Development’s work with government and civil society on reforming fossil-fuel subsidies. Led by the IISD’s Global Subsidies Initiative, these studies shed light on the scale and impacts of fossil-fuel subsidies in Bangladesh, India and Indonesia, and provide practical advice on strategies for reform.

  • “Indonesia’s Fuel Subsidies: An Action Plan for Reform”, outlines a detailed plan for reducing Indonesia’s fuel subsidies. Indonesia spent IDR164.7 trillion (US$18.1 billion) subsidizing fuel products in 2011, of which IDR76.5 trillion (US$8.4 billion) was spent subsidizing gasoline. This is more than the country spent on defence, education, health and social security combined.The report identifies the positions of major civil society organisations and the private sector, based on consultations and surveys. It also provides new analysis of the practical challenges facing the government’s plans to develop alternative, gas-based transport fuels in the Java-Bali region. Finally, the report suggests a set of recommended actions for progressing fuel subsidy reform. (Download Action Plan)
  • “A Citizens’ Guide to Energy Subsidies in India” provides the latest data on the size of fossil fuel subsidies in India. It also gives an accessible introduction to the impact of these subsidies on economic growth, livelihoods and the environment. India has historically subsidized energy with the objective of protecting its consumers from international price volatility and providing energy access for its citizens, especially the poor. However, energy subsidies place a heavy burden on government budgets, while often failing to reach their targeted beneficiaries. (Download Citizens’ Guide India)
  • “A Citizens’ Guide to Energy Subsidies in Bangladesh” is also intended to help citizens understand energy subsidies. The guide discusses the size of subsidies to different energy types, the segments of society that benefit the most, and how they affect the country’s economy and environment. It also highlights the process of reforming energy subsidies, drawing on the experience of Bangladesh and other developing countries. (Download Citizens’ Guide Bangladesh)

Read more on the Partnership for Sustainable Low Carbon Transport (SLoCaT) website.

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ABB
Asia Plantation Capital
Diamond Energy
Basf
City Developments Ltd
DNV-GL
Geocycle
Sindicatum
Olam