Carbon Pricing and Fossil Fuel Subsidy Rationalization Tool Kit
Year: 2023
Content-Type: Report
Description: The main issue for many DMCs contemplating carbon pricing and/or phasing out fossil fuel subsidies is answering the “how” question: How can DMCs design and adopt a viable strategy to combat climate change by using carbon pricing, including subsidy reform, and in the process perhaps generate revenue and improve equity in energy access and use? ADB has developed this tool kit and road map, which outlines the key steps, challenges, and relevant country experiences for all three elements of getting carbon prices right. Drawing on existing research and knowledge products, this policy brief will help policymakers in ADB DMCs appreciate the landscape and, more importantly, the interplay of carbon pricing instruments and fossil fuel subsidies, as well as understand how these policies synergize or conflict with each other and broader environmental goals. The brief provides step-by-step guidelines to ADB DMCs on how to implement carbon pricing policies for a more effective climate policy mix that is responsive to national circumstances, including climate targets articulated under their respective nationally determined contributions.
Pages: 90 pages
Author: Jonassen, Rachael; Skou Andersen, Mikael; Cottrell, Jacqueline; Bhattacharya, Sandeep
Categories: Climate / Resilience, Investments, Market, Policy / Governance, Publications, Risk, Sustainability
Tags: Climate Mitigation, Finance, Risk Management, Sustainability