Ambassador Clare Kelly of New Zealand, the coordinator of the Fossil Fuel Subsidy Reform (FFSR) initiative, outlined progress made in 2025 on the initiative's three main pillars. She highlighted strong interest in sharing experiences under the third pillar focused on identifying and addressing harmful fossil fuel subsidies. Ambassador Kelly urged participating members to continue exchanging ideas and learning from each other's reforms and strategies to tackle social and developmental challenges.
During a dedicated discussion on fossil fuel reforms, the Philippines shared its experiences with energy market and fossil fuel subsidy reform, supporting a transition to sustainable energy solutions while aligning with development priorities. The World Bank introduced two new databases for tracking changes in retail fuel prices and related subsidy policies globally. These tools aim to assist efforts to address challenges related to fuel pricing and subsidies amid volatile market conditions.
Further discussions under the third pillar saw co-sponsors examine trade and environmental impacts of fossil fuel subsidies passed through emissions-intensive industries. The International Energy Agency (IEA) presented its latest energy investment report, showing that support for fossil fuel subsidies remained constant despite a global shift towards clean energy investments.
The Organisation for Economic Co-operation and Development (OECD) shared findings from a study on government support for aluminum smelting and steelmaking, concluding that reforming such support can reduce emissions cost-effectively while reallocating public resources more sustainably. The WTO Secretariat also presented a 2024 working paper analyzing trade effects of carbon pricing policies, including potential impacts of removing fossil fuel subsidies on carbon-intensive industries' comparative advantage.
Co-sponsors expressed gratitude for valuable insights shared by members and stakeholders, emphasizing the need for collective efforts in strengthening fossil fuel subsidy reform. They stressed that persistent fossil fuel subsidies distort comparative advantages and global trade, reinforcing the importance of FFSR's focus on subsidy reform. Co-sponsors proposed ways to enhance understanding and classification of various types of fossil fuel subsidies.
Under the first pillar — "Enhanced transparency" — several co-sponsors like Colombia, Norway, and Switzerland provided updates on their efforts to compile information on fossil fuel subsidies as part of Trade Policy Reviews. The WTO Secretariat presented data from questions and answers related to these subsidies based on 18 reviews conducted in 2024-2025, reflecting increased transparency partly due to sample questions adopted by FFSR co-sponsors at MC13.
Under the second pillar — "Crisis support measures" — ongoing efforts were highlighted to compile information on temporary fossil fuel support measures introduced during the 2022–2023 energy crisis. Co-sponsors reaffirmed work on planned guidelines to ensure future measures remain targeted, transparent, and temporary.
In conclusion, Ambassador Kelly announced that the next FFSR meeting is scheduled for October 2, 2025. The FFSR initiative aims to rationalize or eliminate harmful fossil fuel subsidies through existing mechanisms or new pathways while encouraging WTO members to share information and experiences.