Fiscal Policies


Fiscal Policies Towards an Inclusive Green Economy

3-4 October, 2012


Transitioning towards an inclusive green economy has become a key priority for many governments. To encourage a green economy transition, a broad range of fiscal policies are of particular importance. They are key instruments for reflecting environmental side effects in the prices of energy and transportation services and, in addition, they can provide a significant source of new revenue. Governments have a variety of instruments at their disposal: taxing fossil fuel use, or emissions, in different sectors; reforming energy subsidies that promote unsustainable economic activity; and supporting the shift towards a green economy with the help of fiscal incentives. When designing fiscal policies, their social impact (for example on low income households) should also be taken into account, to promote both green and more inclusive growth.

The joint UNEP-IMF-GIZ workshop Fiscal Policies Towards an Inclusive Green Economy brought together representatives from both finance and environment ministries to share and discuss their experiences and best practices for driving a green economy through fiscal policy reforms. Leading experts on the topic contributed to the discussion by providing technical knowledge on various fiscal measures. Concluding with an interactive discussion among participants, the workshop also encouraged an exchange of best practices among countries, to enhance stronger cooperation between finance and environment ministries, and identify knowledge gaps for future research.

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For more information, see the programme and background papers below.

Agenda for the UNEP-IMF-GIZ Workshop


Day 1 Presentations

Session 1 - Setting the scene: Greening the economy in a fiscally-constrained world

Implications of a green economy for fiscal policy and public investment by Joy Kim, UNEP

Taxing, Greening, and Spending by Michael Keen and Ian Parry, IMF

Ecological Tax Reform in Germany by Reinhard Loske, Consultant

Fiscal Policy Towards an Inclusive Green Economy in Indonesia by Laksmi Dhewanthi, Ministry of Environment, Indonesia

Session 2 - Reforming energy subsidy policy taking into account the social impacts 

Trends and Reform Options for Energy Subsidies: removing environmentally harmful subsidies by Michael Keen, IMF

Enabling Frameworks of Renewable Energy Subsidies for Green Economy by Peter Wooders, Global Subsidies Initiative (Part 1) (Part 2)

Reforming Energy Subsidy Policy: Nepal Experience by Gopi Mainali, National Planning Commission

Session 3 - Tax reforms for greening the economy

Case for and Design of Environmental Taxes by Ian Parry, IMF

Carbon Taxes by Jacqueline Cottrell, Green Budget Europe

Environmental Fiscal Reform and a Proposed Carbon Tax by Cecil Morden, National Treasury, Republic of South Africa


Day 2 Presentations

Session 4 - Fiscal measures to green the transport sector

Reform of Transport Fuel Taxes by Harald Diaz-Bone, GIZ 

Transport Taxation by Ivan Faiella, Bank of Italy

Background Papers for the Workshop include: