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About a trillion dollars are spent every year on energy subsidies. There are several issues with that: first, although these subsidies are aimed to help make poor people’s energy needs more affordable, they frequently end up benefiting richer households who consume more energy. Second, they come with significant fiscal costs for governments. Third, energy subsidies, are responsible for avoidable greenhouse-gas emissions and discourage investments in renewable energy and energy efficiency. 

During this Knowledge Café, participants learned about the challenges, opportunities, and lessons of reforming energy subsidies in developing countries. The panelists shared insights from real-world experiences and exchange ideas on effective approaches to overcoming these challenges and supporting developing countries in their reform efforts.