Fiscal Policy Tools to Protect Our Planet
Climate change is one of the greatest existential challenge of our times. In the 2015 Paris Agreement, 190 parties submitted climate strategies to keep the global temperature increase to 1.5-2 C. and ensure a transition to low emissions economies. A new IMF paper provides country-level guidance on the role, design and economic impact of fiscal policies for implementing these strategies, using a unique and transparent tool laying out the trade-offs among policy options. The IMF will also be releasing updated estimates of energy subsidies at the global and national level.
Christine Lagarde, the IMF’s Managing Director will be joined by Ngozi Okonjo-Iweala, former Minister of Finance of Nigeria and Andrew Steer, President and CEO of WRI, in a session moderated by CGD President, Masood Ahmed to discuss fiscal policy options to achieve the Paris commitments: How much carbon pricing do countries need to meet their commitments? Should an international carbon price floor be established? Or are other solutions like tax subsidies more politically palatable? Where should the revenues be spent? Are physical climate proofing investments enough for adaptation?
- Christine Lagarde, Managing Director, International Monetary Fund
- Ngozi Okonjo-Iweala, Former Minister of Finance, Nigeria and Distinguished Visiting Fellow, Center for Global Development
Andrew Steer, President and CEO, World Resources Institute
Moderator: Masood Ahmed, President, Center for Global Development