THE Republic of the Marshall Islands has been elevated to a leading role in a new global push to unwind fossil-fuel subsidies.
The move comes as Pacific nations grapple with the economic shockwaves of volatile oil markets and rising import bills.
Officials said the Marshall Islands has been appointed co-chair of the Coalition on Phasing Out Fossil Fuel Incentives Including Subsidies (COFFIS), a 17-country group launched at COP28 in Dubai.
Members met this week in Santa Marta during the First International Conference on the Just Transition Away from Fossil Fuels, comparing approaches to cutting subsidies while cushioning households and small businesses.
The talks come as conflict in the Gulf has jolted energy markets, including disruption tied to the Strait of Hormuz, a key chokepoint for global oil shipments.
Brent crude rose above US$100 a barrel, COFFIS said, pushing up fuel and freight costs that feed directly into electricity tariffs and food prices in import-dependent island economies.
Marshall Islands Climate Envoy Tina Stege said the government declared a 90-day state of economic emergency last month as fuel prices climbed to around US$8 a gallon, forcing temporary relief measures.
“Keeping the promises made in Dubai—to transition away from fossil fuels and the subsidies that prop them up—is not optional. It is a matter of survival for countries like ours,” she said.
COFFIS members argue that broad fuel subsidies can be costly and blunt, and that targeted support can better protect low-income households without prolonging dependence on imported diesel.
COFFIS is urging members to publish subsidy inventories and adopt phase-out plans as part of national transition roadmaps.
Dutch Climate and Green Growth Minister Stientje van Veldhoven, a COFFIS co-chair, said the Marshall Islands’ appointment signals a focus on “energy security, economic resilience, and a fair transition.”
Eight members have published inventories so far, with more expected this year.
