To help inform your assumption, consider that fossil fuel phaseout requires three types of investments: in [[clean energy|clean-energy]], in [[alternative economic sectors|alternative-sectors]], and in [[just transitions|just-transition]].
Country-specific estimates are available only for a few countries, and none of them consider all costs of a full phaseout of all fossil fuel extraction. Global estimates can also give us an approximate indication, but they are mainly restricted to the clean energy portion of the costs.
- Based on modelling, the International Energy Agency estimates that to limit warming to 1.5°C, clean energy investments of USD 4.5 trillion per year are needed by 2030. Presently, only USD 2 trillion per year invested in clean energy, out of the USD 3 trillion for energy generally. ([[[Caveats](https://app.hex.tech/019b8fa3-e01c-7002-aa8c-7bbd84aa6232/app/Fair-Fossil-Fuel-Extraction-Phaseout-032TgGsAJJPiKb4ttWQU5N/latest#%23)|IEA-energy-caveats]])
- Based on combining countries’ own costings, the UNFCCC Standing Committee on Finance estimates that achieving the energy-transition portion of developing countries’ Nationally Determined Contributions would cost between USD 2.4 and 3.3 trillion per year by 2030. ([[[Caveats](https://app.hex.tech/019b8fa3-e01c-7002-aa8c-7bbd84aa6232/app/Fair-Fossil-Fuel-Extraction-Phaseout-032TgGsAJJPiKb4ttWQU5N/latest#%23)|SCF-NDC-caveats]])
- In 2025, the oil and gas industry invested USD 570 billion, and the coal industry about USD 150 billion, in exploration and extraction, according to the International Energy Agency. ([[[Caveats](https://app.hex.tech/019b8fa3-e01c-7002-aa8c-7bbd84aa6232/app/Fair-Fossil-Fuel-Extraction-Phaseout-032TgGsAJJPiKb4ttWQU5N/latest#%23)|energy-investment-caveats]])
- Based on just transition programmes in Poland, Spain, the United States, Canada, the United Kingdom, Australia, and Germany, a Maryland University study estimates an average cost per worker of USD 61,000, comprising rehiring support, income compensation, and health support. Extended across the 18 million workers in fossil fuel extraction worldwide, this would imply a total of USD 1.3 trillion, over the course of the transition. ([[[Caveats](https://app.hex.tech/019b8fa3-e01c-7002-aa8c-7bbd84aa6232/app/Fair-Fossil-Fuel-Extraction-Phaseout-032TgGsAJJPiKb4ttWQU5N/latest#%23)|just-transition-caveats]])