Green Fiscal Policies

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The environmental and social costs of using natural resources are often neglected within our economies, market price signals remain distorted and environmentally perverse subsidies are prevalent across sectors such as energy, agriculture and fisheries. At the same time, meeting international commitments such as the Sustainable Development Goals (SDGs) and the Paris Climate Agreement requires a major and sustained increase in investment from all available sources of financing. 

Green fiscal policies can play an important role in this context. By reflecting externalities in resource prices and aligning government expenditures with environmental objectives, green fiscal policies can help shift consumer and business behaviour towards more sustainable patterns. Fiscal reforms can also mobilise substantial public and private revenues, creating fiscal space for green investment and for broader fiscal reform.

This video aims at explaining how green fiscal policies can play a key role in supporting delivery of several SDGs and countries’ commitments under the Paris Climate Agreement.


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