UK, Colombia, New Zealand join fossil fuel subsidy coalition at COP29 as negotiators eye new climate finance deal  

Baku, Azerbaijan – At a COP29 press conference, the United Kingdom, Colombia, and New Zealand announced they are joining the Dutch-led Coalition on Phasing Out Fossil Fuel Incentives (COFFIS) launched at COP28. 

While Civil Society Organizations applaud the growing membership, they urge all members to move beyond merely identifying fossil fuel subsidies—estimated at hundreds of billions annually—and take decisive action to phase out fossil fuels and eliminate these handouts that artificially sustain fossil fuel industry profits. Rich countries must lead the global transition away from fossil fuels by rapidly eliminating their oil, gas, and coal subsidies and redirecting these funds toward climate finance. As they negotiate a new climate finance target (NCQG) in Baku, they should put an offer on the table that prioritizes grant-based and highly concessional funding over private financing, ensuring adequate support for an equitable fossil fuel phaseout worldwide.

Laurie van der Burg, Public Finance lead at Oil Change International, said:
“We applaud the growing membership of the fossil fuel subsidy phase-out coalition, and call on all members to put their promises into action. Transparency is empty without action. To have real-world impact, rich governments must lead the charge by ending their fossil fuel subsidies before the end of 2025 and phasing out fossil fuels. Ending oil, gas, and coal subsidies can make a substantial contribution to freeing up the trillions needed for climate action at home and abroad and is sorely needed as countries must move mountains to agree on a new climate finance target in Baku.”

Dieuwertje Wallaart, Jonge Klimaatbeweging (JKB), said:
“As Dutch youth, we are proud of the leadership the Netherlands has shown in this coalition and hope it continues to grow during this COP29 and beyond. The work on transparency is a great first step. The next step is to show that same leadership by fulfilling the coalition’s promise. Starting to phase out fossil fuel subsidies is crucial to ensure that the burden of climate inaction does not fall on future generations.” 

Maarten de Zeeuw, climate & energy campaigner at Greenpeace Netherlands:
“It is good that the Dutch minister Hermans is continuing this coalition and bringing new countries on board. It is a first step that these countries disclose their fossil subsidies, which they should have done years ago already. It is like kicking off the match in extra time. Because 8 years ago already, the EU promised to stop fossil subsidies in 2025. We need concrete action now: to end fossil subsidies. And use the billions that are now going to the fossil fuel industry to ensure clean energy from the sun and wind for everyone.”

Nine de Pater, lead campaigner fossil fuels at Milieudefensie, said:
“As one of the countries that launched the coalition last year, it is time for the Netherlands to step up its game and finally end fossil fuel subsidies. The Netherlands spends more than 40 billion euros yearly on these subsidies, choosing big polluters over people and the planet. Money that should be spent on climate finance instead. Milieudefensie applauds every new member of the coalition. We urge Minister Hermans of the Netherlands, and the coalition, to take action now and lead by example. And phase out fossil fuel subsidies starting today.”

Laura Sabogal, Senior Policy Advisor for Public Banks and Development Finance in E3G said:
“At a time when many of the world’s wealthiest nations have yet to openly recognise and address their own huge and deeply damaging fossil fuel subsidies, Colombia is yet again showing itself as a true climate leader. This represents Colombia taking another tangible step towards decarbonising its economy, but more than that, it sends a clear signal that it’s possible for a major fossil fuel producer to explore ending the fossil fuel subsidies and unlock resources to deliver climate-positive development ambitions.”

Luisa Fernanda Umaña, Researcher for the Fossil Fuel Non Proliferation Treaty Initiative, said:
“Colombia’s decision to join this coalition is the most coherent with the goals and pronouncements that the country has expressed regarding the urgency of breaking fossil dependence. This is great news for the organizations that have been promoting a fair exit from fossil dependence since, currently, subsidies to the fossil industry constitute a giant barrier to the promotion of other energy alternatives, promote dependence in vulnerable economic sectors, and guarantee corporate profits with public money.”

Rebecca Newsom, Senior Political Advisor at Greenpeace UK, said:
“The UK’s decision to join this coalition is another indication that British climate diplomacy is finally coming out of its slumber after several dormant years under the Tories. Further collaboration around tackling fossil fuel subsidies can only be a good thing. But given G7 and G20 leaders have repeatedly signed statements over many years to tackle this issue, now is the time for real action. UK fossil fuel production subsidies are worth billions every year. These should be redirected immediately, alongside extra taxes on the fossil fuel industry, to unlock cash to deliver on the UK’s climate finance obligation to support developing countries. It’s time to make polluters pay for the climate damages they have caused.”

Notes:

• Members that joined the initiative at COP28 include Netherlands, Antigua and Barbuda, Austria, Belgium, Canada, Costa Rica, Denmark, Finland, France, Ireland, Luxembourg and Spain at the COP28 in Dubai.
• They committed to publish inventories of their fossil fuel subsidies by COP29. Belgium, France, the Netherlands and Ireland have done so. Others have yet to meet this commitment. 
• They also committed to “developing national strategies [for national-level phaseout of fossil fuel subsidies] within a clear timeline” and to identify and address international barriers, including international aviation and maritime transport.###