Options for International Agreements on Fossil Fuel Subsidies

Growing international understanding about the impact of fossil fuel subsidies is increasing interest in disciplining the use of such subsidies through international agreements between governments willing to engage in a deeper and more ambitious fossil fuel subsidy reform. While such agreements might take different forms and shape depending on their parties, ranging from a subset of provisions in free trade agreements to agreements more specifically focused on this topic, any international agreement on fossil fuel subsidies would require the consideration of a number of building blocks. In this options paper, we discuss six potential building blocks for any such agreement. For each one, we identify a series of options and choices for negotiators to consider and also identify potential advantages and limitations of each option. The options paper does not aim to prescribe any specific options for governments to take. It rather explores the alternatives available for governments that could be considering various
options and their suitability for specific disciplines