12.c.1 Amount of fossil-fuel subsidies per unit of GDP (production and consumption) and as a proportion of total national expenditure on fossil fuels
Awareness and understanding of existing subsidies based on credible data is necessary to increase transparency and inform decision-making. Reporting against a global indicator measuring consumer and producer fossil fuel subsidies provides a global picture that encompasses both consumer and producer subsidies. It allows for tracking of national and global trends and serve as an important guide for policy-making.
Three sub-indicators are recommended for reporting on this indicator:
- Direct transfer of government funds.
- Induced transfers (price support); and as an optional sub-indicator.
- Tax expenditure, other revenue foregone, and under-pricing of goods and services.