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Corporate Leaders Groups

Business leadership for a climate neutral economy

31 July 2015 – Last week, the UK government became the most recent supporter of the Friends of Fossil Fuel Subsidy Reform Communiqué, which is calling on a fundamental rewiring of our global economy through the elimination of fossil fuel subsidies.

The groundswell of commitment to reform fossil fuel subsidies is growing. One of the key tools that has been introduced to demonstrate this commitment is the 'Friends of Fossil Fuel Subsidy Reform Communiqué' – developed by the New Zealand government and first released with the support of a number of countries in April this year.

Last week, the UK government became the most recent supporter, when new Climate & Energy Secretary Amber Rudd announced:

"One of the most positive developments is the momentum building to phase out inefficient fossil fuel subsidies that encourage consumption.

As the Prime Minister told the UN last September, these fossil fuel subsidies are 'economically and environmentally perverse'.

The IEA have estimated that globally they run to almost $550bn a year.

The UK does not subsidise fossil fuel consumption, and we are working with the G20 and others to bring them down.

International action needs to be well co-ordinated and ambitious, which is why I am looking at ways of taking this forward.

For instance, I can announce today the UK is throwing its weight behind the Friends of Fossil Fuel Subsidy Reform Communique to be launched at the climate change talks in Paris this year."

This follows our own efforts earlier this month when we facilitated a high-level debate with 40 senior decision-makers and influencers who agreed to work together to address the challenge of rewiring our global economy through the removal and reforming of the current flow of financial incentives to encourage the production and use of fossil fuels.

Leaders from business, government and international organisations agreed this would make a significant contribution to our shared objectives of reducing greenhouse gas emissions and enabling sustainable growth.