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Opinion: COP27: Which countries will push to end fossil fuel production? And which won't?

A managed fossil fuel phasing-out offers a chance for producers – including governments, corporations and unions – to negotiate the terms of a ‘just transition’ to renewable energy.
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COP27 has given countries and organizations yet another chance to push for a managed decline in fossil fuel production. A climate action banner hangs from the Tower bridge in London in April 2022.

Fossil fuels have provided a crucial . But they also account for , enable and support many .

The , begins Sunday in , Egypt, offering countries and organizations yet another chance to push for a phasing out of fossil fuel production. have made this move both urgent and challenging.

As researchers working on climate change and resource governance, we believe that and — which aims at addressing the threat posed by fossil fuel production — can help build momentum towards phasing out fossil fuels.

A managed fossil fuel phaseout offers a chance for producers — including governments, corporations and unions — to negotiate the terms of a to renewable energy that includes retraining workers, addressing lost income, securing new forms of energy and diversifying fossil fuel dependence economies.

COP26 opened the doors for a phaseout

The that emerged out of COP26 last year, called upon parties to “accelerate efforts towards the phase-down of unabated coal power and inefficient fossil fuel subsidies, recognizing the need for support towards a just transition.”

The COP26 also saw the launch of the through which governments like Costa Rica, Denmark, France, Greenland, Ireland, , Sweden and Wales can pledge to either phase out the production of fossil fuels, commit to a production phaseout with a legislated end date for existing production, or make looser commitments.

So far, no government with significant fossil fuel production has joined or endorsed the , a fast growing civil society initiative calling for an end to new exploration and production, a fair phaseout of existing production and a for fossil fuel workers, communities and producing countries.

Having tracked through the which countries had previously to curtail fossil fuel production, including moratoria, divestments, carbon taxes or subsidy phaseouts, we tried to determine which of them might join an international coalition for a managed phasing out of fossil fuel production.

Who may join the phaseout coalition?

Using the Fossil Fuel Cuts Database, we tested economic, political and climate vulnerability factors against initiatives already taken between 2006 and 2019 by 124 governments with fossil fuel reserves. that dependence on fossil fuel rents reduces the likelihood of constraint measures, but not the size of fossil fuel reserves or production. Richer countries are also more likely to use constraints.

Based on our findings, we sketched seven main categories of countries for building up a global phaseout coalition.

The first and most likely members of such coalitions are middle and high-income countries with democratic regimes, active domestic climate movements and fossil fuel reserves of little significance to their economy. This has been the case of most of .

The second category includes small countries that have no fossil fuel industry and are highly vulnerable to climate change impacts, such as .

The third category comprises countries with little prospect of fossil fuel production compared to major stakes in a green transition, such as a leading copper and lithium producer.

A fourth category includes high-income democratic countries with significant fossil fuel production but a diversified economy, such as the , which shut down some of its natural gas fields.

A fifth category comprises countries where fossil fuel production is almost exclusively serving domestic energy markets that are slowly decarbonizing. — the three biggest coal burners — have considered phasing down their coal production, but are yet to sign the — a coalition of national and sub-national governments, businesses and organizations working to advance the transition from unabated coal power generation to clean energy.

A sixth category includes countries that are highly dependent on fossil fuel revenues but still interested in accelerating their , such as , the world’s largest exporter of crude oil, which embarked on an ambitious economic diversification plan. But, like with many , this plan largely relies on fossil fuel revenues to finance diversification and a green transition, thus sustaining the paradox of increased production to pay for a planned phaseout.

A seventh category comprises low to middle-income countries with a high level of dependence on foreign aid, foreign direct investment and fossil fuel revenues. These countries face and often become even more . Compensating them for . However, may at some point decide to join a coalition following initial pledges to keep fossil fuels in the ground.

The right incentives can mobilize institutions

An agreement over a managed fossil fuel phaseout will not only help reduce emissions, but also help producers move away from the .

With the right kind of economic and political incentives, including support for economic diversification and energy security guarantees, a phaseout agreement could attract producing countries and , including the International Energy Agency, the Organization of the Petroleum Exporting Countries, the UN Framework Convention on Climate Change and the World Trade Organization.

The next two COP meetings taking place in Egypt and in the United Arab Emirates will play a crucial role in increasing pressure to phase out fossil fuels, expanding the number of BOGA members and starting substantive discussions on .

The Conversation

Philippe Le Billon receives funding from the Social Sciences and Humanities Research Council.

Päivi Lujala receives funding from the Academy of Finland.

Nicolas Gaulin does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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