APEC Fossil Fuel Subsidy Reform Peer Review
In March 2015, New Zealand voluntarily took part in an APEC Fossil Fuel Subsidy Reform (FFSR) peer review. The review is aimed at identifying inefficient fossil fuel subsidies that lead to wasteful consumption. New Zealand is the second country to undertake the review, after Peru in June 2014.
What the review found
The APEC panel reviewed eight measures that are considered to support the fossil fuel sector:
- Motor spirit excise duty refund
- Funding of international treaty obligation to hold oil stocks
- Non-resident drilling rig and seismic ship tax exemption
- Indemnity for mining land remediation
- Research and development funding for the oil industry
- Tax deductions for petroleum-mining expenditures
- Financial restructure of Solid Energy
- Petroleum tax and royalty regime
In its findings, the panel did not identify any inefficient fossil fuel subsidies that lead to wasteful consumption in New Zealand. The preliminary findings were officially presented at the 49th Energy Working Group meeting in Gyeongju, Korea on 25 June 2015. The final report was released in October.
New Zealand fully supports global efforts to reform inefficient fossil fuel subsidies. Since 2010, it has helped promote FFSR internationally as a co-coordinator of the Friends of FFSR, an informal group of non-G20 countries that support G20 and APEC Leaders’ commitments to phase-out inefficient fossil fuel subsidies.
Find out more
- Conclusions and Recommendations of APEC Peer-Review Panel: APEC IFFSR Peer Review Panel March 2015, Wellington New Zealand [PDF 635KB]
- Peer Review on Fossil Fuel Subsidy Reforms in New Zealand: Final Report – September 2015 [PDF 1.9MB]
- APEC Energy Working Group Guidelines on a Voluntary Peer Review for Reform of Inefficient Fossil Fuel Subsidies that Encourage Wasteful Consumption [PDF 185KB]