G20 beefs up pledge to phase out fossil fuel subsidies

World leaders at this weekend's G20 Summit in Toronto reiterated their pledge to phase out "inefficient" fossil fuel subsidies, after attempts to water down the commitment were resisted.

There had been concerns that the G20 could back away from its earlier pledge to phase out fossil fuel subsidies estimated to be worth $550bn a year, after a leaked draft of the communiqué released at the end of the summit showed that efforts to cut back on such subsidies would be "voluntary" and "member-specific ".

However, the final version of the text released yesterday afternoon did not contain any reference to the measures being voluntary.

"We welcome the work of finance and energy ministers in delivering implementation strategies and time frames, based on national circumstances, for the rationalisation and phase out over the medium term of inefficient fossil fuel subsidies that encourage wasteful consumption, taking into account vulnerable groups and their development needs," the text stated. "We also encourage continued and full implementation of country specific strategies and will continue to review progress towards this commitment at upcoming summits."

Sources at the summit told news agency Reuters that the language had been strengthened at the last minute at the insistence of the US, which first proposed the phasing out of subsidies at last year's meeting of the G20 in Pittsburgh, and has made the plan a key component of its climate change strategy.

Research from the International Energy Agency has suggested that phasing out fossil fuel subsidies over the next decade could cut global greenhouse gas emissions by around seven per cent.

The Toronto statement also referenced the BP oil spill in the Gulf of Mexico, arguing that countries needed to "share best practices to protect the marine environment, prevent accidents related to offshore exploration and development, as well as transportation, and deal with their consequences".

Russian president Dmitry Medvedev said after the summit that he had put forward proposals for an international pollution clean-up fund that oil companies would be required to pay into. He added that other leaders had agreed to look at the idea and had tasked a team of experts to report back on its viability.

The final version of the communiqué also reiterated the group's support for a "green recovery" and pledged to continue to support international climate change talks ahead of the next major UN summit in Mexico later this year.