Each year, governments around the world collectively spend billions of dollars subsidizing the production and consumption of electricity, fossil fuels, or district heating. These subsidies cause economywide distortions and encourage excessive and inefficient consumption of energy. In both developing countries and advanced economies, governments often subsidize energy sources and carriers, ranging from petroleum products such as gasoline, diesel, liquefied gas or kerosene, to electricity or district heating. This practice diverts funding from more pressing priorities such as healthcare, education, the fight against hunger, or supporting renewable energy. Energy subsidies often are intended to lower energy costs for the poor, but the broad application of price subsidies ends up disproportionately benefiting richer households who consume more energy. While the case for reforming energy subsidies is clear, implementing such reforms is politically and technically challenging.