Learn about the Lofoten Declaration, a global requirement for a controlled reduction in fossil fuel production But because the potential emissions of coal, oil and natural gas, which are already in production, are depleting the carbon budget for the 2oC warming limit of the Paris Agreement, any bank that supports the further development of the fossil fuel sector is incompatible with Paris according to the report. The article why fossil fuel producer subsidies matter – shows how the removal of subsidies can prevent new fossil fuel projects by making them unprofitable. The authors note that the elimination of a single type of subsidy could reduce global oil consumption by 440 to 770 million barrels by 2030. Economist Andrew Simms, co-director of the New Weather Institute, and Peter Newell, professor of international relations at the Centre for Global Political Economy at the University of Sussex in the United Kingdom, had previously called for the development of a fossil fuel non-proliferation treaty to limit the supply of fossil fuels. In this context, Costa Rica, Fiji, Iceland, New Zealand, Norway and Switzerland have agreed to negotiate the Climate Change, Trade and Sustainability Agreement (ACCTS), an agreement that provides for the pooling of trade, climate change and sustainable development objectives. As such, the ACCTS will include commitments to reform fossil fuel subsidies, with the priority of disciplining fossil fuel subsidies. Growth in fossil fuel production has continued to increase over the past decade, what the United Nations Environment has described as a “lost decade for climate action” in a 10-year review published in September. Although the United States played an important role in the development of the climate agreement, it is the only one of the 200 parties to withdraw from the pact. Whoever wins the U.S. presidential election, the United States officially withdraws from the Paris climate agreement on November 4. This measure is a blow to international efforts to stop global warming.