Members review MC14 outcomes, discuss energy crisis responses amid Middle East conflict

New Zealand, the coordinator of the FFSR initiative, recalled the key outcomes achieved by 48 co-sponsors at MC14, which represented progress across the three pillars of the FFSR initiative identified in its MC13 workplan. These pillars are enhancing transparency, crisis-support measures, and identifying and addressing the most harmful fossil fuel subsidies.

New Zealand noted that the MC14 Joint Ministerial Statement reaffirms co-sponsors' commitment to the rationalization, phase-out, or elimination of harmful fossil fuel subsidies, and sets out guidelines for designing transparent, targeted and temporary fossil fuel subsidy measures in response to energy crises. Also annexed to the statement is an updated non-exhaustive list of sample questions for use in the WTO's Trade Policy Reviews.

In addition, New Zealand released a coordinator's progress report summarizing the main areas of work under the initiative during 2024-2025. These included a working draft of a Grid Outlining Subsidy Types and Impacts, which compiles information on the situations and sectors in which fossil fuel subsidies are used and their possible harmful environment and trade impacts.

Building on the positive outcomes achieved at MC14 in March 2026, co-sponsors felt it was timely to deepen discussions on crisis-support measures. Following the outbreak of the conflict in the Middle East, many governments introduced temporary measures to shield households and businesses from rising energy and commodity prices. Mindful of the implications of such interventions for fossil fuel subsidy reform, the coordinator underscored the importance of ensuring that emergency support measures remain targeted, temporary and transparent.

Chile presented its policy response to the 2026 fuel price shock. Given its near-total dependence on imported fuels, the country sought to balance consumer protection with fiscal sustainability. Rather than relying on broad-based energy subsidies to fully absorb the rise in international oil prices, the government adjusted its Fuel Price Stabilization Mechanism (MEPCO) to limit fiscal costs. At the same time, it implemented a package of targeted and temporary fiscal and economic measures to stabilize the market, mitigate the social and economic effects of higher fuel prices, and protect households, vulnerable groups and small businesses.

The Organisation for Economic Co-operation and Development (OECD) presented its Energy Support Measures Tracker, which analyses new measures adopted by OECD countries in response to the energy crisis. The data showed that most OECD members relied on broad-based untargeted measures - particularly fuel tax reductions and price caps - to cushion the impact of higher energy costs, with support often focused on diesel and gasoline. The OECD also noted that as global energy prices have recently declined to pre-crisis levels, governments have begun phasing out emergency support measures introduced during the crisis. Looking ahead, the OECD emphasized the importance of strengthening resilience to future shocks through greater energy supply diversification, improved energy efficiency and better preparedness.

The International Energy Agency (IEA) presented its 2026 Energy Crisis Policy Response Tracker, which monitors policy responses by more than 110 governments worldwide. According to the tracker, 92 governments introduced price-support measures to assist households and businesses, 58 adopted energy-conservation measures and campaigns to curb fuel consumption, and 28 announced structural policies aimed at strengthening long-term energy resilience. Looking beyond immediate crisis management, the IEA also emphasized the importance of structural reforms to enhance energy security and resilience, including scaling up energy-efficiency programmes, which can help reduce reliance on emergency support measures.

Members welcomed the valuable information shared, expressing interest in monitoring the phase-out of crisis support measures while at the same time reinforcing the need to accelerate the transition away from fossil fuels. Several members also outlined their own crisis-response measures, emphasizing the need to align short-term interventions with longer-term transition goals and to redirect resources towards renewable energy and clean energy investments. For example, the European Union highlighted its AccelerateEU Catalogue of best practices in this respect.

In closing the meeting, the coordinator highlighted the FFSR 101 learning workshop held just ahead of the FFSR meeting, organized by the International Institute for Sustainable Development and New Zealand. The workshop, which received positive feedback from participants, was aimed at advancing understanding of fossil fuel subsidy reform. Building on this success, additional training sessions and in-depth thematic discussions could be held alongside future FFSR meetings.

More information

The FFSR initiative seeks to achieve the rationalization, phasing-out or elimination of harmful fossil fuel subsidies through the use of existing mechanisms or the development of new pathways to reform. It encourages WTO members to share information and experiences to advance discussions at the WTO. Forty-eight members are currently participating in the initiative as co-sponsors.

More information about the FFSR initiative is available here.