removing ehs roundtable: fossil fuels · would undertake a reciprocal peer review of their...
TRANSCRIPT
Removing EHS roundtable: Fossil fuels
Ronald Steenblik, Special Counsellor,
Fossil-Fuel Subsidy Reform, OECD
G7 Workshop on Environmentally Harmful Subsidies
and Environmental Fiscal Reforms
Rome, 14-15 March 2017
2 2 Trade and Agriculture Directorate | Organisation for Economic Co-operation and Development (OECD) | www.oecd.org/tad | [email protected]
The IEA’s estimates of global fossil-fuel consumption subsidies*
2015
*Those measurable
through an obser-
vable price gap.
Sources: IEA (2015 & 2016), World Energy Outlook, OECD/IEA, Paris.
3 3 Trade and Agriculture Directorate | Organisation for Economic Co-operation and Development (OECD) | www.oecd.org/tad | [email protected]
The OECD’s estimates of fossil-fuel support in OECD countries and the BRIICS
Sources: OECD (2015), OECD Companion to the Inventory of Support Measures for Fossil Fuels 2015, OECD Publishing, Paris.
Mexico accounts
for most of the
recent decline
End of diesel
subsidies in
India
2015 reform in
Indonesia? OECD
countries
Brazil, Russian Federation,
India, Indonesia, China, and
South Africa
US
D m
illi
on
s
Coal Coal
Natural
gas
Crude oil &
petroleum
products
Crude oil &
petroleum
products
WHAT IS HAPPENING AT THE INTERNATIONAL LEVEL?
4
5 5 Trade and Agriculture Directorate | Organisation for Economic Co-operation and Development (OECD) | www.oecd.org/tad | [email protected]
• G20, APEC, and G7
• Friends of Fossil Fuel Subsidy reform (Costa Rica, Denmark, Ethiopia,
Finland, New Zealand, Norway, Sweden, Switzerland, Uruguay)
• WTO (proposed work programme by NZ)
• Several bilateral free-trade agreements (FTAs) and regional trade
agreements (RTAs)
• Various activities by inter-governmental organisations
• IEA
• IMF
• OECD
• World Bank
• Regional development banks (ADB, IDB)
Numerous intergovernmental initiatives
6 6 Trade and Agriculture Directorate | Organisation for Economic Co-operation and Development (OECD) | www.oecd.org/tad | [email protected]
• This led in December 2013 to a joint announcement by the People’s
Republic of China and the United States of America that the two countries
would undertake a reciprocal peer review of their fossil-fuel subsidies
under the G20 process.
• Other countries—Germany, Mexico, and Indonesia—have since joined
China and the United States in agreeing to undertake peer reviews of their
own under the G20.
• A similar exercise is taking place in the context of APEC, with Peru, New
Zealand, the Philippines, and Chinese Taipei each having already
undergone a peer review of their subsidies between March 2014 and
September 2016, and Viet Nam and Brunei Darussalam have also
volunteered to undertake APEC peer reviews.
The G20 and APEC voluntary peer reviews
7 7 Trade and Agriculture Directorate | Organisation for Economic Co-operation and Development (OECD) | www.oecd.org/tad | [email protected]
The G20 and APEC timelines to date
Group of Twenty (20)
Asia-Pacific Economic Cooperation (APEC)
Po
litic
al p
ha
se
-o
ut co
mm
itm
ent
Po
litic
al p
ha
se
-o
ut co
mm
itm
ent
2009 2010 2011 2012 2013 2014 2015 2016 2017
EW
G r
eco
mm
en
ds
peer
revie
ws
PR
gu
ide
line
s
G2
0 F
ina
nce
Min
s.
ca
ll fo
r p
ee
r re
vie
ws
CH
N &
US
A v
olu
nte
er
for
PR
s
CH
N &
US
A P
Rs
publis
hed
FFSR formed
FFSR Communiq.
Pe
ru P
R p
ub
lish
ed
NZ
L P
R p
ub
lish
ed
Pe
ru P
R v
isit
NZ
L P
R v
isit
CH
N &
US
A P
R
vis
its
DE
U &
ME
X P
R
vis
its
DE
U &
ME
X P
Rs
to
be p
ublis
hed
TW
N
TW
N
PH
L
PH
L
VN
M
VN
M
TO
R fo
r P
Rs a
gre
ed
b
etw
ee
n C
HN
& U
SA
BR
N
CH
N &
US
A s
ub
mit
se
lf r
evie
ws
8 8 Trade and Agriculture Directorate | Organisation for Economic Co-operation and Development (OECD) | www.oecd.org/tad | [email protected]
The G20 voluntary peer-review of FFS process
Produce self
review
People’s Republic of China (China)
United States of America (USA)
Agree TOR
China review team: Germany, Indonesia, USA,
IMF, OECD
USA review team: China, Germany, Mexico,
OECD
Q & A
Q & A
Hold in-person
meeting
Hold in-person
meeting
Produce self
review Nominate review team
Nominate review team Produce
final report
Produce final
report
9 9 Trade and Agriculture Directorate | Organisation for Economic Co-operation and Development (OECD) | www.oecd.org/tad | [email protected]
Participation in a peer reviews encourages a country to think about the
sequencing of reform, and what it can commit to publicly.
The self reviews, and the peer reviews themselves have been more detailed
or covered more policies, or both, than the progress reports.
Preparing for the reviews can be a salutary learning experience for both the
country under review (including across ministries) and the peer reviewers.
There has been an element of precedent-setting in both the structure and
conduct of the reviews, and in what types of policies were discussed and
how they were discussed.
A common understanding of what is meant by terms like “subsidy” and
“inefficient” is likely to emerge.
Voluntary peer reviews: vehicles for knowledge transfer and support between G20 countries
10 10 Trade and Agriculture Directorate | Organisation for Economic Co-operation and Development (OECD) | www.oecd.org/tad | [email protected]
• Agree a target phase-out date for “inefficient fossil-fuel subsidies”
• Consult with trade experts, in addition to experts from finance and energy
ministries.
• Develop a central repository for peer-review reports and country progress
reports (recently established : http://www.oecd.org/site/tadffss/publication/).
• Establish a mechanism for monitoring follow-up to the peer reviews.
• Establish peer-review processes for economies that are not members of
either APEC or the G20.
• Develop common criteria for ranking different types of policies (or
combinations of policies) for reform.
How to improve and build on the PR process?
WHAT ABOUT UNILATERAL CHANGES?
11
12 12 Trade and Agriculture Directorate | Organisation for Economic Co-operation and Development (OECD) | www.oecd.org/tad | [email protected]
• Major price reforms for petroleum products by India, Indonesia, Mexico, and
for natural gas and electricity in Argentina
• Major increases in natural gas prices in Ukraine
• Most of the Gulf Cooperation States (including Saudi Arabia) have raised
prices for petroleum fuels, and some also for electricity
• Recent price reforms by Algeria, Egypt, Morocco, Tunisia
• Imminent ending of hard-coal subsidies in Germany
However, more work to be done. And the durability of the reforms will be
tested if and when international petroleum and natural gas prices rise
significantly again.
Lots of activities – examples:
13 Trade and Agriculture Directorate | Organisation for Economic Co-operation and Development (OECD) | www.oecd.org/tad | [email protected]
13 13 13
We look forward to answering any questions you may have!
Contact us