Energy
News
Energy Subsidy Reform in Action: From Ambition to Action
Defne Gencer and Beatriz Arizu from the World Bank examine government support for the energy industry. A significant portion of the public budget is allocated to artificially lowering the cost
The effects of critical mineral endowments on green economic growth in Latin America
The Latin America region is a major producer and exporter of critical minerals such as lithium, cobalt, copper, and nickel. Brazil holds approximately 20% of the world’s nickel reserves, while
Unlocking Clean Power for All: How tipping points theory can guide effective use of public funds
Indira Urazova and Tara Laan from the International Institute for Sustainable Development study tipping points to identify key areas for public intervention necessary for a transition to green energy. Positive
Reports
Detox Development: Repurposing Environmentally Harmful Subsidies (WB)
A new World Bank report examines how subsidy reform can help safeguard the world’s foundational natural assets – clean air, land, and oceans. These assets are critical for human health
Sustainable Recovery Tracker (IEA)
The new IEA Sustainable Recovery Tracker measures global recovery plans against this target level of spending by monitoring energy-related policies and government spending on clean energy measures by country and by sector in the wake of the pandemic.
Update on Recent Progress in Reform of Inefficient Fossil-Fuel Subsidies that Encourage Wasteful Consumption 2021 (OECD, IEA)
This report informs on latest trends in 2020 data on support for fossil fuels and offers good practices and lessons learned emerging from country experiences, as reflected in the growing body of G20 peer reviews.
Policy Briefs
Fossil Fuel Subsidies Reform
Introduction Fossil fuels are the single largest contributor to greenhouse gas emissions, making it urgent to accelerate the transition towards other forms of energy (IPCC, 2022). The phasing out of inefficient
Fiscal policies for a low-carbon economy
Research on climate economics finds that green bonds can accelerate a low-carbon transition, may have a positive impact on aggregate output and employment, help to advance renewable energy technology, address better the issue of fair transition, and be a stabilizing force on the financial market compared to conventional, in particular fossil fuel-based, assets.
Carbon taxation and inflation: Evidence from Europe and Canada
Model-based studies on the effect of carbon taxation point to sizeable inflationary effects. This column uses evidence from Canada and Europe over the past three decades to show that carbon taxes changed relative prices but did not increase the overall price level. Instead, they were slightly deflationary. Income compression was most pronounced among the richest households, suggesting that the redistribution scheme achieved its intended aim of favouring low-income households.
