APEC Fossil Fuel Subsidy Reform Peer Review
New Zealand voluntarily took part in an APEC Fossil Fuel Subsidy Reform (FFSR) peer review in 2015 to identify inefficient fossil fuel subsidies leading 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 8 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 didn't identify any inefficient fossil fuel subsidies that lead to wasteful consumption in New Zealand.
New Zealand's commitment
New Zealand fully supports global efforts to reform inefficient fossil fuel subsidies.
Since 2010, it has helped promote APEC Fossil Fuel Subsidy Reform 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.