The costs of fossil fuel subsidies far outweigh the benefits when considering the full economic, social, and environmental impact of these subsidies in sub-Saharan Africa. If done right, phasing out fossil fuel subsidies in sub-Saharan Africa will lower greenhouse gas emissions, reduce air pollution, and create the fiscal space to provide access to energy and meet social development objectives. 

After several years at high levels, oil prices dropped by more than half between June 2014 and January 2015, leading many to ask questions about the implications for the economy and for countries’ and companies’ energy choices. Although such price swings have happened before, the issues being discussed are indeed quite important. 

Strong, predictable and rising carbon prices send an important signal to markets and can reduce greenhouse gas emissions without harming the economy. Around 40 national jurisdictions and over 20 cities, states and regions, have adopted or are planning explicit carbon prices, covering about 12% of global GHG emissions.

Global aviation and shipping together produce about 5% of global CO2 emissions, and by 2050 this is expected to rise to 10–32%. Yet these sectors offer some of the most cost-effective emission reductions available today, particularly through improved fuel efficiency. The Global Commission on the Economy and Climate recommends that emissions from the international aviation and maritime sectors be reduced in line with a 2°C pathway through action under the International Civil Aviation Organization (ICAO) and the International Maritime Organization (IMO). 

This report finds that growth strategies which fail to tackle poverty or climate change will prove to be unsustainable, and vice versa. A common denominator to the success of both agendas is infrastructure development. 

What happens to clean infrastructure finance when countries are big and fast-growing but have immature financial systems and a scarcity of long-term domestic investors? The Climate Policy Initiative (CPI) compares two different financing models from middle income countries: the highly centralized model of Brazil and the decentralized model from India. 

About US$90 trillion in infrastructure investment is needed globally by 2030 to achieve global growth expectations, particularly in developing countries. To achieve this, infrastructure investment needs to be both scaled up and climate objectives need to be integrated due to climate risks. The Global Commission on the Economy and Climate recommends that G20 and other countries adopt key principles ensuring the integration of climate risk and climate objectives in national infrastructure policies and plans. 

This note describes the Commission’s assessment of future infrastructure investment needs. It presents projections for a baseline scenario, and the estimated incremental investment required for a low-carbon scenario. It sets out the sources used and provides an overview of the estimates and modelling undertaken by the New Climate Economy (NCE) network.