March 2015: Participants explored fiscal measures for climate change mitigation and adaptation, environmental taxes in developing countries, sustainable water management, green fiscal reform and incentives for clean energy investments, among other topics at the Green Growth Knowledge Platform’s (GGKP) third annual conference. The conference report, titled ‘Fiscal Policies and the Green Economy Transition: Generating Knowledge, Creating Impact,’ highlights key messages and provides an overview of the sessions.

Participants recognized that social, political and economic obstacles to green fiscal reform exist and must be considered within the wider sustainable development context, according to the conference report. It suggests building support for environmental taxes and other fiscal policies by earmarking revenues for environmental purposes, strengthening trust in government and public organizations, accounting for distributional consequences and providing information about how such taxes work. The report also highlights the importance of developing evidence-based narratives and recommends additional research on equity and efficiency considerations as well as on behavioral change.

A long-term view may be necessary to address climate change and decarbonize the economy, says the report. It cautions against short or medium term targets that may not adequately address climate change and achieve intended results, and stresses the importance of getting “the sequencing right,” underscoring the importance of both the right investment environment and having investors.

The report also highlights key messages related to, inter alia: eliminating harmful subsidies and divesting from fossil fuel sources to encourage movement towards a green economy and promote health benefits; taxing carbon; and designing fiscal policies.

The UN Environment Programme (UNEP), The Energy and Resources Institute (TERI) and the Ca’Foscari University of Venice hosted the conference with support from the Governments of the Netherlands and Switzerland. The conference convened from 29-30 January in Venice, Italy. [Publication: Fiscal Policies and the Green Economy Transition: Generating Knowledge, Creating Impact]