CMIA believes strongly that the playing-field for clean energy needs to be levelled. This can be achieved partly through the removal of fossil fuel subsidies around the world. We are therefore delighted to become an official supporter of the Fossil Fuel Subsidy Reform Communiqué, an initiative whose time we believe has come.

In a few days, COP21 will bring together Heads of State, business leaders and civil society groups with the hope that the negociations between 191 countries will give us a framework to decarbonize our economies. In order to catalyse change we are convinced that we need a carbon price to enable deep de-carbonization pathways through innovative low carbon solutions as well as the elimination of subsidies for fossil fuels such as coal, oil and natural gas. That is why we support this initiative through The Prince of Wales Corporate Leaders Group because like the other member companies we believe that carbon pricing combined with fossil fuel subsidy reform is a significant pathway to real decarbonisation

As we approach the Paris climate talks and a turning point where the transition to a low-carbon future becomes inevitable, it is becoming ever more clear that fossil fuel subsidies, which we know both hinder the development of low carbon solutions and disproportionately benefit the well-off in society, need to be put in the past. I am delighted that together with the other members of the Corporate Leaders Group on Climate Change, we have the opportunity to endorse the Friends of Fossil Fuel Subsidy Reform Communiqué and add our voice to this critical issue.

By supporting the FFSR Communique, our members, leading businesses from across the world, are being loud and clear, end perverse fossil fuel subsidies now for the benefit of sustainable and low carbon economic development.

Read the full Corporate Leaders Group’s press release here.

Momentum behind the Communiqué is building. Phasing out fossil fuel subsidies is now a hot topic as business and government leaders recognise it will deliver a significant decrease in emissions.

While impressive progress is being made in some parts of the world to phase out fossil fuel subsidies, they remain stubbornly persistent: based on our latest estimate they amounted to almost USD 500 billion last year. Fossil fuel subsidies encourage wasteful consumption of finite resources with very detrimental economic and environmental consequences. To make matters worse, the benefits mainly go to richer households as they consume more energy: only 8% of the money spent typically reaches the poorest 20% of the population. I am convinced that subsidy reform can and should be a key pillar of a comprehensive strategy that can lead to a near-term peak in energy-related GHG emissions. I therefore endorse the Fossil Fuel Subsidy Reform Communiqué to Paris COP 21 and I commend this initiative to others.