Fossil Fuel Subsidy Reform in the WTO: Options for Constraining Dual Pricing in the Multilateral Trading System (ICTSD)

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Fossil fuel subsidies harm the environment, add to health hazards caused by air pollution, and delay the energy transition. Scholars and practitioners have therefore been exploring ways to reform and eliminate them. This paper discusses the practice of energy dual pricing in the broader context of fossil fuel subsidy reform. The contribution explores avenues for constraining dual pricing, which is approached as a fossil fuel subsidy, within the framework of the WTO. It does so by proposing options under existing rules, as well as suggesting changes to the system beyond current rules. The full report is available for download on the ICTSD website.