Fiscal Instruments in INDCs: How countries are looking to fiscal policies to support INDC implementation
Countries are increasingly turning to the use of fiscal instruments to support low-carbon development and efforts to reduce emissions.
This is evidenced in the proliferation of the references to these instruments within the Intended Nationally Determined Contributions (INDCs) that were submitted and examined in advance of COP 21.
With that in mind, IISD and GIZ (on behalf of the German Ministry for Economic Cooperation and Development) have undertaken a rapid review of INDCs to highlight countries that have identified these tools as part of their INDCs, catalogue the different tools countries referenced, detect the frequency of their use and identify trends for how countries are planning to use fiscal instruments to support the implementation of INDCs.
Based on the analysis, this review provides several recommendations, in order to highlight resources that support the implementation of fiscal instruments countries have committed to in their INDCs. For countries that have not yet indicated that fiscal reforms will be part of their INDC implementation, but may have an interest in exploring this area, this rapid review can serve as a starting point by indicating how other countries are approaching this issue and offering insight into ways that fiscal policy can support INDC implementation while opening fiscal space for countries.
You might also be interested in
Legal expert: ECT withdrawal 'is the only possible course of action'
Following the decision by several EU member states to leave the controversial Energy Charter Treaty (ECT), the European Commission must now put proposals on the table for the EU to withdraw collectively, says Lukas Schaugg.
In U-turn, Brussels recommends EU-wide exit from controversial Energy Charter Treaty
In a notable U-turn, the European Commission has proposed a collective and coordinated exit of all 27 member states from the controversial Energy Charter Treaty (ECT), an obscure international agreement that protects energy investors from unexpected circumstances that might hurt their profit expectations.
Coal phase-out alone will not be fast enough, developed countries must speed up oil and gas exit for 1.5°C
1.5°C pathways propose phasing out coal faster than is feasible for coal-dependent developing countries; developed nations must do more, says peer-reviewed research.
View: India needs accelerated support for electric vehicles to achieve net zero
The recent Auto Expo 2023, India's largest motor show, generated significant excitement with the launch of several low- and zero-emission vehicle models, including electric vehicles (EVs), hydrogen, and hybrids. While the event confirmed the auto industry’s growing focus on decarbonization, it also showed that India urgently needs to accelerate budgetary support for zero-emission technologies—particularly EVs, as the most mature and commercially viable segment in the transport sector.