There is no consistent evidence that 
current emission trading systems have led to signiﬁcant emissions 
leakage (medium conﬁdence). {WGIII SPM E4.2, WGIII SPM E.4.6} 
Removing fossil fuel subsidies would reduce emissions, improve 
public revenue and macroeconomic performance, and yield 
other environmental and sustainable development beneﬁts such 
as improved public revenue, macroeconomic and sustainability 
performance; subsidy removal can have adverse distributional 
impacts especially on the most economically vulnerable 
groups which, in some cases, can be mitigated by measures 
such as re-distributing revenue saved, and depend on national 
circumstances (high conﬁdence). Fossil fuel subsidy removal is 
projected by various studies to reduce global CO2 emissions by 1–4%, 
and GHG emissions by up to 10% by 2030, varying across regions 
(medium conﬁdence). {WGIII SPM E.4.2} 
National policies to support technology development, and 
participation in international markets for emission reduction, 
can bring positive spillover effects for other countries 
(medium conﬁdence), although reduced demand for fossil fuels as 
a result of climate policy could result in costs to exporting countries 
(high confidence). Economy-wide packages can meet short-term 
economic goals while reducing emissions and shifting development 
pathways towards sustainability (medium confidence). Examples 
are public spending commitments; pricing reforms; and investment 
in education and training, R&D and infrastructure (high confidence). 
Effective policy packages would be comprehensive in coverage, 
harnessed to a clear vision for change, balanced across objectives, 
aligned with specific technology and system needs, consistent 
in terms of design and tailored to national circumstances (high 
confidence). {WGIII SPM E4.4, WGIII SPM 4.5, WGIII SPM 4.6}
4.8 Strengthening the Response: Finance, International Cooperation and Technology
Finance, international cooperation and technology are critical enablers for accelerated climate action. If climate 
goals are to be achieved, both adaptation and mitigation ﬁnancing would have to increase many-fold.