Economics of Climate Change Ep 3: Supporting Greenhouse Gas Emissions Reduction with Fiscal Policies

Webinar Series on the Economics of Climate Change Episode 3: Supporting Greenhouse Gas Emissions Reduction with Fiscal Policies
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The United Nations Environment Programme’s Emissions Gap Report 2023 projects an increase in greenhouse gas (GHG) emissions by 2030 of 3%, based on current policies, while it was 16% at the time of the Paris Agreement’s adoption in 2015. This is good news, but by 2030, GHG emissions will still need to decrease by 28% and 42% to achieve global average temperature increases of 2°C and 1.5°C, respectively, by the end of the century.
Current plans reflected in the nationally determined contributions (NDCs) are putting us on a path toward an increase of 2.4°C-2.6°C. Therefore, we must urgently intensify mitigation actions to change this trajectory. Mitigation actions decrease the amount of GHG emissions released into the atmosphere and reduce the concentration of carbon dioxide by enhancing sinks (e.g., the expansion of forests).
Episode 3 of the Webinar Series on the Economics of Climate Change will focus on fiscal policies, which include government spending and taxation and are powerful instruments for supporting climate change mitigation. Through specific country examples, it will also highlight how fiscal space be used to support GHG emissions reduction.