Case studies: reforming environmentally harmful subsidies
A series of case studies that explore how governments around the world are reforming and repurposing environmentally harmful subsidies to benefit people, nature and business. Governments can overcome sizeable political and technical challenges by working across ministries, communicating clearly their reasoning, objectives and changes and supporting those affected by reform
This collection of case studies examines how governments have implemented the reform and repurposing of environmentally harmful subsidies, such as fossil fuel subsidies and agricultural subsidies.
IIED developed and analysed six countries – from Colombia, Egypt, Indonesia, Mexico, Nigeria and the UK – that have undergone reform, and in some cases the repurposing, of environmentally harmful subsidies into positive incentives for nature and people.
Subsidy reforms can be a highly visible policy change, as they affect prices and real incomes. The case studies highlight the importance of government coordination, cohesion and clarity to bring together technical expertise and political understanding, ensuring reforms support wider government priorities and meet citizens’ needs.
Building support for reform beyond government, to also include businesses, workers and their representative organisations, can mitigate pushbacks and remove barriers to reform. Accompanying policy change with communication campaigns that are targeted and tailored to those affected by reform – both positively and negatively – has also proven to make policy change more effective.
This series is part of work to transform environmentally harmful subsidies into positive incentives for business, nature and people, in partnership with The B Team and Bankers without Boundaries, with funding from The Collaborative for Systemic Climate Action.
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Contact: Anna Ducros ([email protected]), researcher, nature and climate finance