Sound Regulation of Energy infrastructure
This is a new work area introduced by the Russian Presidency. The Russian Presidency aims at drafting principles for efficient energy market regulation to stimulate infrastructure investment and integrate green growth and sustainable development priorities into structural policies. In this logic the elimination of inefficient fossil fuel subsidies that stays as clear commitment for the G20 is arguably a regulatory case. The Russian Presidency aims at providing recommendations on the voluntary peer review process for fossil fuel subsidies.
Fossil Fuel Subsidies
At the Pittsburgh Summit, the leaders emphasized the need to rationalize and phase out over the medium term inefficient fossil fuel subsidies that encourage wasteful consumption over the medium term while providing targeted support for the poorest which was further reaffirmed at the Los Cabos Summit. At the Los Cabos Summit, the Leaders welcomed the progress report on fossil fuel subsidies and asked the Finance Ministers to report back by the next Summit on progress made and to explore options for a voluntary peer review process for G20 members by their next meeting in November 2012.