The rise in energy prices in the wake of the Covid-19 pandemic recovery in 2021, exacerbated by Russia’s war of aggression against Ukraine in 2022 Long term trends such as underinvestment in natural gas and clean energy supply are also at play (see IEA (2021[13])). has prompted governments worldwide to provide relief to households and businesses. However, the support measures have raised several concerns, including issues of fairness, fiscal costs, effectiveness in staving off inflation and alignment with climate mitigation objectives. Concerns regarding fairness have arisen as higher income households were more likely to benefit from these measures (see, e.g., Ari et al. (2022[1])). Furthermore, the incidence of some support measures has also been cause for concern, since tax reductions generally benefit producers more than consumers when fuel supply is inelastic (see, e.g., OECD (2022[2]), Van Dender and Raj (2022[3])). Another important concern relates to the impact of support measures on price signals. Given the increasing urgency of climate change mitigation, lowering energy prices and in turn carbon prices signals undermines incentives to fulfil net-zero objectives.