Mitigation potential of removing fossil fuel subsidies

This working paper analyzes the assumptions, data and environmental and economic implications of removing fossil fuel subsidies. Its primary findings are that removing these subsidies would equate to approximately one-seventh of the action needed to keep global temperature increase below 2°C, and that although their removal would provide global economic and environmental benefits, not all countries and regions would benefit evenly. In particular, it notes that oil-exporting countries would likely face small real income reductions, but that these could be mostly compensated for by using former fossil fuel subsidy monies for social welfare-improving activities.