​Removing fossil fuel subsidies is key to reduce greenhouse gas emissions and limit climate change. However, if poorly planned, fossil fuel subsidy reform can lead to price increases that could impact the poorest and trigger social unrest. Beyond being environmentally impactful, such reforms must be socially and economically fair to be accepted by citizens. UNDP's research highlights the key factors for such reforms to be successful. 

This report is part of UNDP's Don't Choose Extinction campaign. It is one of three reports that, together, form a policy toolkit to support countries design and implement fair fossil fuel reforms and carbon pricing policies. It is therefore complemented by the following two reports:  A Guide to Carbon Pricing and Fossil Fuel Subsidy Reform: A Summary for Policymakers and Alternative Uses of Pre-tax Fossil Fuel Subsidies per Year.