NetZero Milan - Expo summit 2026

On 22 October 2026, NetZero Milan will host the conference “Abating income taxes or abating excise taxes, can we phase-out fossil fuels subsidies?”, organised in collaboration with Aldo Ravazzi Douvan.

The session will address one of the most complex issues in the energy transition: whether and how fossil fuel subsidies can be progressively phased out without placing excessive pressure on households, businesses and sectors particularly exposed to increases in energy prices.

Periods of crisis — including pandemics, armed conflicts and energy supply disruptions — can lead to sharp increases in energy prices, with knock-on effects on consumer prices, inflation and international trade. In these circumstances, governments often intervene through subsidies or tax reductions to stabilise prices, support vulnerable industries and protect consumers. The panel will examine the broader consequences of these measures for public finances, price signals, energy security and the transition away from fossil fuels.

The discussion will also consider the limits of relying solely on voluntary measures, information campaigns or traditional regulatory instruments to achieve ambitious environmental objectives. Against the backdrop of climate change, biodiversity loss and pollution, increasing attention is being paid to economic and fiscal instruments capable of aligning market incentives with environmental goals.

Fossil fuel subsidies remain a significant component of this debate. According to the OECD, support measures for fossil fuels amounted to an estimated USD 920 billion in 2024, primarily through fiscal measures. The International Monetary Fund has also highlighted the scale of both explicit and implicit fossil fuel subsidies, particularly when the environmental and social costs associated with air pollution and climate change are taken into account.

International initiatives are increasingly focusing on subsidy reform. The Coalition on Phasing Out Fossil Fuel Incentives Including Subsidies (COFFIS) is working to advance coordinated action at both national and international levels, while recent international discussions have highlighted the need to align fiscal systems, trade policies and financial frameworks with the objectives of the energy transition and a just transition.

Against this background, the panel will explore whether there is room for a gradual but credible phase-out of fossil fuel subsidies and whether reducing income taxes, or other forms of more distortionary taxation, could help offset the economic impact of subsidy reform.

Prof. Edoardo Croci, SUR Lab Director at Bocconi University, will take part in the discussion, alongside experts from the OECD, IISD, ECCO and other institutions. The session will provide an opportunity to assess the trade-offs between short-term economic protection and long-term environmental objectives, and to discuss how fiscal policy can support a transition that is both economically sustainable and socially equitable.