Between 1990-91 and 1995-96, total fossil fuel subsidies in 14 developing countries that account for 25 percent of global carbon emissions from industrial sources declined 45 percent, from $60 billion to about $33 billion. (During this same period, OECD subsidies declined by 20.5 percent, from $12.5 billion to $9.9 billion.)
Within the past six years, India, Mexico, South Africa, Saudi Arabia, and Brazil also cut fossil fuel subsidies significantly. Using World Bank estimates of price elasticities of demand and inflation-adjusted internal fuel prices, carbon savings of up to 26 MtC per year should result in these countries from fuel price reforms. An additional 19.5 MtC in savings should result from fuel price reforms on petroleum products in China over this same time period.
Many developing countries are also actively promoting energy efficiency and renewable energy. Cogen requirements (China)
Argentina has developed a compressed natural gas vehicle program that is now the largest in the world, with over 450,000 vehicles now powered by CNG--nearly 10 percent of the total fleet. Argentina also adopted regulations that reduced emissions from natural gas flaring. Despite a 61 percent increase in natural gas production between 1994 and 1997, flaring was reduced by 42 percent during the same period.