We analyze in detail the equivariant supersymmetry of the G/G model. I
n spite of the fact that this supersymmetry does not model the infinit
esimal action of the group of gauge transformations, localization can
be established by standard arguments. The theory localizes onto reduci
ble connections and a careful evaluation of the fixed point contributi
ons leads to an alternative derivation of the Verlinde formula for the
G(k) WZW model. We show that the supersymmetry of the G/G model can b
e regarded as an infinite dimensional realization of Bismut's theory o
f equivariant Bott-Chem currents on Kahler manifolds, thus providing a
convenient cohomological setting for understanding the Verlinde formu
la. We also show that the supersymmetry is related to a non-linear gen
eralization (q-deformation) of the ordinary moment map of symplectic g
eometry in which a representation of the Lie algebra of a group G is r
eplaced by a representation of its group algebra with commutator [g, h
] = gh - hg. In the large k limit it reduces to the ordinary moment ma
p of two-dimensional gauge theories.