The World Bank has been encouraging both developed and developing states, especially those with petroleum reserves, to use the removal of subsidies as a mechanism for promoting energy transitions away from fossil fuels. The transition has led to social unrest in some cases, especially where there is a culture of entitlement to low-cost energy because it is an indigenous resource. Such reforms have been more effective when governments have been able to clearly show how savings are applied to social and health programs that benefit human well-being. Nevertheless, policymakers should not underestimate the complexity of issues involved in the removal of subsidies that will increase the cost of carbon and hasten the transition to cleaner fuels . A crucial issue to take into account is the harmful effects some subsidies have on biodiversity. Although governments agreed in 2010 to make progress on reducing subsidies in 2010, by 2020 few governments had identified specific incentives to remove or taken action towards their removal. Further investigation of the positive and negative effects of subsidy redirection or elimination on people and the environment .
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report