Download OPENING REMARKS BY MR. KIMMO TIILIKAINEN, THE MINISTER

OPENING REMARKS BY
MR. KIMMO TIILIKAINEN, THE MINISTER OF
AGRICULTURE AND THE ENVIRONMENT OF FINLAND
at the Private Sector Breakfast with
the Friends of Fossil Fuel Subsidy Reform and
the Cambridge Institute for Sustainability Leadership (CISL)
at the New Zealand Residence in New York
on Saturday, 26 September 2015
Excellencies, Distinguished Guests, Ladies and Gentlemen.
It is a great pleasure also for me to welcome you to this important
discussion on the phase-out of fossil fuel subsidies, and on how we can
move this issue – together.
Fossil fuel subsidy reform is important not just in and of itself.
We are meeting here in NY to agree on a pathway to sustainable
development. The world has defined a set of key Sustainable Development
Goals, and we will start working on their implementation – now. With a view
to this challenge, and against the backdrop of uncertain global economic
prospects, it makes no sense to lock up 550 billion USD annually in harmful
fossil fuel subsidies.
We are also heading very rapidly towards COP-21 of the UN Framework
Convention on Climate Change. For COP-21 to become a game-changer,
a wide set of policy solutions and initiatives must align. One important piece
of the puzzle is fossil fuel subsidy reform.
So why then does fossil fuel subsidy reform hold so much potential?
I would like to draw your attention to four key points:
First of all, let’s look at economics. It makes no sense to spend so much
money on subsidizing fossil fuels: 550 billion USD annually, according to
the International Energy Agency. This is equivalent to four times the level of
official development assistance. Removing fossil fuel subsidies frees up
resources to invest in sustainable development – including the SDGs I
mentioned before.
Second, there are large environmental benefits to reforming fossil fuel
subsidies. I already mentioned climate change. Already partial reform
would decrease GHG emissions by 12% by 2020. In addition, local air
pollution would decrease.
Thirdly, I would also like to mention the social benefits of fossil fuel subsidy
reform, typically found in our partners in the developing world. Only a small
subset of fossil fuel subsidies actually benefit the poorest in society.
Therefore, if these subsidies are phased out – in carefully managed ways,
of course – they can be re-channeled towards social goals directly.
Alternatively – and now I get to my fourth point – money freed up can also
be channeled towards investments in a low-carbon future. Today, four
times more financial support goes to fossil fuels than to renewable energy.
While fossil fuel subsidies lock us into a high-carbon future, reform levels
the playing field for clean and renewable energy solutions.
To conclude, fossil fuel subsidy reform is a global challenge – and a
tremendous opportunity. We all need to do our share of reform to create a
fair playing field for businesses to flourish in. I know this first-hand, as in
Finland we are investing strongly in cleantech and the bioeconomy. On the
other hand, businesses also have a stake in speaking up in favor of fossil
fuel subsidy reform, which will benefit them.
Thank you and I look forward to a good discussion.