Policy Brief | A G20 pathway towards oil and gas phase-out

Why This Matters

The G20 countries produce three-quarters of the world’s greenhouse gas emissions. While they have invested heavily in renewable energy, progress on phasing out oil and gas has stalled. These fuels remain deeply tied to transport and industry, and are still heavily supported through subsidies and public finance. Without coordinated action, the energy transition will be uneven and unfair.

The Current Picture

Despite repeated promises, oil and gas still dominate G20 energy systems. Governments continue to provide subsidies and financial support, locking economies into fossil fuel dependence. Some nations are pushing for stronger action, while others argue for slower phase-downs due to economic reliance on oil and gas. This division has kept G20 commitments weak and timelines unclear.

South Africa’s Opportunity

As G20 President in 2025, South Africa has a unique chance to shape global discussions. With its own challenges of coal dependence and costly oil imports, the country understands the stakes. By championing subsidy reform, financing for the Global South, and a renewables-led transition, South Africa can help forge common ground between developed and developing nations.

What Needs to Happen

To make real progress, the G20 must:

  • Set clear targets for phasing out oil and gas.
  • End harmful subsidies and redirect funds towards renewable energy and social protection.
  • Scale up electrification and local renewable industries to cut imports and create jobs.
  • Provide affordable finance so emerging economies can transition fairly.
  • Agree on a shared definition of a just transition to ensure inclusivity.
  • Build a permanent platform for action backed by knowledge and finance partners.

A Defining Moment

The G20 represents 85 percent of global GDP and two-thirds of the world’s population. Its leadership is vital to ending oil and gas dependence. South Africa’s presidency comes at a critical time, just ahead of COP30, offering a chance to commit to bold and collective action. This is more than a climate obligation. It is an opportunity to build stronger and more resilient economies powered by clean energy.