OECD Inventory of Support Measures for Fossil Fuels 2023
OECD
Abstract
Brief draws upon the 2023 update of the Inventory of support measures for fossil fuels covering 48 countries.The following methodological caveats should be noted.Aggregate numbers from the Inventory represent the fiscal cost of support measures for fossil fuels.They should not be interpreted as a level of support for fossil fuels, nor as an indicator of the extent to which the considered policies are favourable or unfavourable to climate mitigation.The Inventory reports tax expenditures as estimates of revenue foregone due to measures that reduce or postpone tax payments relative to a jurisdiction's benchmark tax systems to the benefit of fossil fuels producers or users.Tax expenditure estimates can thus increase over time due to either an increase in the offered concession (relative to benchmark tax systems) or an increase in the benchmark itself.Cross-country comparisons of tax expenditures can also be misleading due to differences in countries' benchmark tax systems.