Search Climate Insights Directory

The report examines the impact of COVID-19 on the energy sectors of South Korea and Indonesia and evaluates their fiscal recovery programs. South Korea's Green New Deal (GND) explicitly integrates climate goals with economic recovery, focusing on green infrastructure and low-carbon energy. In contrast, Indonesia's National Economic Recovery (PEN) program primarily targets short-term health and social stability, with only 0.9% of its budget allocated to energy transition. The study identifies structural barriers in both nations—such as South Korea's centralized market and Indonesia's high financing costs—and recommends that future stimulus include specific emission targets and incentives to attract private investment.

The document argues that Indonesia's current LPG subsidy system is regressive, benefiting wealthy households more than the poor, and places a significant burden on the state budget. It proposes a shift to targeted subsidies using biometric verification and direct benefit transfers. The report analyzes how India and Mexico used economic crises as opportunities to reform fuel pricing and strengthen social safety nets. It also warns that shifting from LPG to electric induction stoves could increase greenhouse gas emissions due to Indonesia's coal-heavy energy mix.

The document analyzes the fiscal challenges facing Indonesia, specifically its low tax-to-GDP ratio and the burden of fuel subsidies. It uses India's experience—where gasoline and diesel subsidies were phased out and replaced by flexible excise duties—as a blueprint for Indonesia. The authors recommend that Indonesia implement a fixed fuel tax to raise revenue for social programs and pandemic recovery, suggesting that such a measure is more politically viable in the short term than immediate subsidy elimination.

The document examines the OECD's two-pillar digital tax reform, arguing that while named 'digital', its scope extends to the mining sector. It analyzes the exclusion of non-renewable resources from 'Amount A' of Pillar One, the inadequacy of 'Amount B' for mineral marketing, and the risks Pillar Two poses to developing nations, such as potential tax leakage to headquarters countries during cost-recovery periods.

The report finds a significant investment gap between Canada's current climate-related fiscal commitments and the funding required to reach net-zero emissions by 2050. While acknowledging positive steps in public transit and building energy efficiency, the authors argue that Canada is being outpaced by international peers, such as the US and EU, in per capita green spending. The analysis identifies critical funding shortfalls across seven sectors, including transportation, clean energy, and nature-based solutions, and calls for Budget 2021 to prioritize uncosted measures and scaled-up investments to ensure an equitable green recovery.

The document argues that South Africa's local government fiscal framework is unsustainable because municipalities cannot raise sufficient own revenue to cover operating expenditures. This funding gap has led to financial distress for many municipalities and the erosion of the social wage, as affordable basic services for poor households are not maintained. The authors conclude that the original assumptions of the 1998 White Paper on Local Government are incorrect and call for a redesign of the local government structure based on empirical data regarding service costs and affordability.

The document assesses South Africa's adherence to the ICESCR during the COVID-19 pandemic, highlighting failures in revenue generation and expenditure allocation. It argues that austerity measures have undermined healthcare, education, and social security, and proposes specific fiscal reforms—such as wealth taxes and a universal basic income grant—to ensure the progressive realisation of human rights.

The document argues that domestic budgets are often the largest source of adaptation finance in developing countries but are systematically under-utilised due to technical, institutional, and political barriers. It introduces 'climate budgeting' as a set of interventions across the budget cycle—from preparation and approval to execution and oversight—to prioritise adaptation. Through case studies in the Philippines, Afghanistan, India, and Bangladesh, the paper demonstrates how tools like climate budget tagging and climate change impact appraisal (CCIA) can increase the volume and quality of adaptation spending. It concludes with recommendations for governments to mainstream adaptation into routine public financial management and for international funders to use domestic budgets as a delivery modality for climate finance.

The report examines the high cost and regressive nature of India's energy consumption subsidies, which totaled INR 87,830 crore (USD 13.1 billion) in 2017. It highlights a critical knowledge gap, as the last comprehensive distributional analysis is based on 2011 census data. The document proposes several targeting mechanisms, including opt-out schemes, volumetric quotas, categorical targeting based on social or geographic criteria, and the use of proxy means testing via income and asset data. It specifically analyzes the Ujjwala scheme's success in connection targeting and the challenges of sustained LPG usage among the poor due to ongoing consumption costs.

The document outlines proposed amendments to India's Electricity Act 2003 to introduce direct benefit transfers for subsidies and promote renewable energy. It notes a government ambition to increase its renewable energy target to 225 GW by 2022, though external analysts are less optimistic. The report highlights a rising fiscal burden from oil subsidies, potentially reaching USD 7.4 billion in FY2019, and details significant financial stress in the power sector. Additionally, it covers the expansion of LPG connections for poor women and the transition of several states to become kerosene-free.

The Indian government is implementing a series of reforms to reduce its petroleum subsidy bill, including daily price revisions for petrol and diesel and the gradual elimination of LPG and kerosene subsidies by March 2018. Simultaneously, the government is expanding electricity access through the Saubhagya scheme and restructuring distribution company debt via UDAY. There is also a proposal to integrate petroleum products into the unified Goods and Services Tax (GST) mechanism to simplify the current dual-taxation system.

The document examines the fossil fuel subsidies provided by the province of Quebec, which primarily take the form of fuel tax relief. It argues that these subsidies act as a 'negative carbon price' that undermines Quebec's own greenhouse gas reduction targets and Canada's international commitments. The author identifies several key tax exemptions for aviation, rail, and regional consumers, and suggests mitigation strategies to support vulnerable sectors during a transition to cleaner energy.

The report examines how environmental taxes and other market-based instruments can fund renewable energy deployment. Through eight case studies from diverse economies, it argues that EFR can generate a 'double dividend' by reducing pollution while providing stable funding for green energy. It highlights the importance of revenue recycling to maintain economic competitiveness and the role of earmarking in increasing policy transparency and public acceptance. For China, the report suggests transitioning from electricity surcharges to a system based on natural resource and carbon taxes to ensure long-term investment stability.

The report analyzes Indonesia's fuel subsidy regime, highlighting the fiscal burden of spending IDR 164.7 trillion (US$ 18.1 billion) in 2011. It evaluates the government's 2012 plans to restrict 'Premium' gasoline use and deploy CNG and LGV alternatives, while recommending a transition toward market-based pricing and improved public communication to mitigate social unrest.

The paper finds that while Uganda has increased its climate ambition in its updated NDC, its actual post-COVID recovery packages have largely ignored green goals in favor of immediate health and economic rescue. It highlights a significant funding gap, where over 70% of NDC implementation costs must come from external sources, and warns that rising public debt may further obstruct climate investment. The authors recommend leveraging green procurement, nature-based solutions, and innovative financing to align economic recovery with the country's transition to a green economy by 2030.