Climate policy has traditionally focused on taxes and permits to reduce emissions, but fossil fuel subsidies present a significant challenge to these efforts. These subsidies, which involve government contributions that distort market prices, act as a negative carbon tax, encouraging fuel consumption. In 2022, fossil fuel subsidies made up 7.1% of the global GDP, highlighting the gap between efficient pricing and actual retail prices. For instance, in January 2024, gasoline cost just $0.029 per litre in Iran, compared to $3.091 in Hong Kong.