G20 Update on recent progress in reform of inefficient fossil-fuel subsidies that encourage wasteful

The OECD has acted as the Secretariat for the completed six peer reviews by chairing the in-person meetings of the review panels, co-ordinating the review processes and drafting the final report in consultation with panel members. [...] Review teams were comprised of representatives from Germany, Indonesia, the United States, the IMF, and the OECD for the review of China; and of Germany, Mexico, and the OECD for the review of the United States. [...] The IEA measures subsidies based on the amount by which the price of a given fuel falls short of its reference price, which corresponds to the international market price, adjusted for the costs of transportation and distribution and value-added tax (VAT), or where appropriate the full cost of supply. [...] In the closing statement of the 2016 G20 summit in Hangzhou, China, the G20 countries reiterated their full and undivided commitment to “rationalize and phase out inefficient fossil-fuel subsidies that encourage wasteful consumption over the medium-term, recognising the need to support the poor”. [...] In the In-depth review of the Slovak Republic, the IEA recommended the government to eliminate the subsidies of the coal sector (IEA, 2018[12]).