Fiscal Policies for a Low-Carbon Economy (World Bank)

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The report Fiscal policies for a low-carbon economy makes an important contribution to our understanding of which fiscal policies work best and can be a guide to policy makers as they consider the most effective ways to achieve a low-carbon future.

The report finds clear evidence that green bonds can support carbon taxation by acting as a bridge financing instrument, smoothing the path toward a low-carbon transition and overcoming financial market practitioners’ and governments’ short-termism. These findings are particularly timely as governments worldwide are looking for ways to recover and rebuild from the devastating impacts of Coronavirus (COVID-19).

Making the right investments now through stimulus and recovery programs can lay the foundation for a sustainable, inclusive, and resilient recovery.