Search Climate Insights Directory

SAFTU criticizes the South African state's COVID-19 response as 'tokenistic,' arguing that the R12 billion stimulus (0.23% of GDP) is inadequate compared to global responses. The statement calls for emergency taxation of the rich, a Basic Income Grant, and the appropriation of private facilities for public use. It warns that a security-focused lockdown without adequate income security for informal and unemployed workers could lead to political catastrophe.

The Institute for Economic Justice argues that South Africa must implement bold, decisive economic stimulus measures focused on four objectives: supporting households and communities, protecting workers, sustaining businesses, and managing the economy for long-term transformation. The authors advocate for universal income transfers, emergency paid sick pay, conditional business relief, and a 'Green New Deal' to ensure a more equitable and sustainable recovery. They emphasize that financing these measures should avoid austerity-driven reprioritization and instead rely on solidarity taxation and increased borrowing.

The research paper calculates fiscal multipliers for South Africa using a closed input-output model based on 2018 data. It finds that the average income multiplier is 1.68 and the employment multiplier is 6.9, suggesting that public spending has a significant positive impact on GDP and job creation. The authors argue that the South African government's 2020 Budget, which proposes spending reductions of approximately R48 billion, will likely reduce GDP by R81 billion and destroy approximately 330,000 jobs due to these high multipliers and the existing negative output gap.

The document outlines a framework for governments to assess the need for mining sector tax relief, identifying criteria for eligible companies and proposing specific short-term fiscal measures. It emphasizes that aid should be targeted at companies in genuine financial distress, conditioned on labor retention and transparency, and avoid broad corporate tax exemptions.

The report argues that a settlement of the Cyprus problem would significantly boost the island's economy by creating economies of scale and opening access to the EU and Turkish markets. Using sectoral and total factor productivity (TFP) forecasting, the authors estimate that a solution could increase overall GDP by €11 billion to €17.4 billion over 20 years and raise GDP per capita by €6,800 to €11,000. Key growth sectors include wholesale and retail trade, tourism, construction, and professional services. The report also provides a framework for financing property compensation and emphasizes that closing the gender gap and establishing inclusive institutions are critical for maximizing the peace dividend.

In 2017, fossil fuels accounted for 92% of South Africa's primary energy supply, with related taxes and revenues making up 6.8% of general government revenue. The document argues that these revenues should be used to diversify the economy and cover the social costs of a just transition, while the phasing out of fossil fuel subsidies would increase government revenues and promote clean energy.

In 2017, fossil fuels accounted for 89% of China's primary energy supply, with related taxes and revenues representing 4.2% of general government revenue. The document argues that phasing out fossil fuel subsidies and strategically using these revenues can support economic diversification and the social costs of a just transition for vulnerable workers and communities.

The report analyzes the reliance of BRICS nations on fossil fuel revenues and subsidies, urging a strategic shift in fiscal policy to diversify economies and support vulnerable groups during the clean energy transition.

The document analyzes South Africa's heavy reliance on coal, which provided 89% of its electricity in 2017. It details the fiscal impact of this dependence, noting that while fossil fuel production revenues are modest, consumption taxes—primarily the fuel levy—contribute significantly to government revenue. The report also highlights the role of state-owned enterprises like Eskom and PetroSA, the risks of asset stranding, and the government's commitment to a 'just transition' and carbon taxation despite political flux in energy policy.

The World Resources Institute (WRI) endorses the IMF's Fiscal Monitor report, which identifies carbon pricing as the most efficient tool for climate mitigation. The WRI highlights the report's finding that carbon pricing could prevent 725,000 premature deaths from air pollution in G20 countries by 2030, while noting that the current global average carbon price of $2 per ton is insufficient to limit warming to 2°C.

The report argues that austerity—defined as fiscal policy aimed at solving debt and growth problems through spending cuts and regressive taxes—leads to economic deterioration, rising unemployment, and increased inequality. It highlights that South Africa is deepening its implementation of austerity despite moderate debt levels compared to international norms. The author contends that these policies undermine constitutionally enshrined rights to health and education and proposes a shift toward a stimulus-based fiscal plan focused on progressive taxation and structural transformation.

This executive summary by the Climate Policy Initiative analyzes the economic transition of the Berau District in East Kalimantan, Indonesia, from a coal-dependent economy to one based on palm oil. The study finds that shifting from coal to a palm oil mono-crop is unsustainable and risks food security. It recommends a transition plan focusing on RSPO certification, increasing production efficiency, diversifying into other high-value crops like pepper and cocoa, and developing downstream processing refineries to capture added value and increase government revenue.

The document analyzes the fiscal dynamics of fossil fuels in Mexico, noting a decline in extraction revenues and an increase in consumption revenues. It argues for a cost-benefit analysis of continued fossil fuel reliance versus renewable alternatives and calls for increased transparency in hydrocarbon and coal revenues. The report warns against regressive generalized subsidies and highlights the tension between the administration of Andrés Manuel López Obrador's goal to increase oil extraction for energy security and the resulting environmental and social challenges.

The report analyzes the economic fragility of Berau Regency due to its heavy reliance on coal mining and the risks of replacing it with a palm oil monoculture. It argues for a multi-dimensional transition focusing on palm oil productivity efficiency over expansion, diversification into high-value crops like pepper and cocoa, and the development of downstream processing industries. The document also proposes optimizing local government revenue and implementing innovative ecological fiscal transfer mechanisms to incentivize sustainable land management.

The report examines the operations of mineral and metal commodity trading companies, highlighting their role as intermediaries and financiers for mining companies, particularly small-scale producers in emerging economies. It identifies that while most traders operate independently—reducing the risk of transfer pricing—their lack of transparency and use of complex corporate structures can facilitate tax evasion and corruption. The document specifically analyzes risks associated with 'metal streaming' and prepayments, which can shift wealth from host countries to investors. It recommends that host governments implement mandatory contract registration, use internationally recognized pricing for tax calculations, and strengthen financial disclosure requirements for private trading firms.

The report examines the operational and financial models of mineral and metal trading companies, highlighting their role as intermediaries and financiers for small and medium-sized mining firms. It concludes that while these companies generally operate on an arm's length basis, their inherent opacity and the use of complex financial arrangements, such as streaming agreements, create potential fiscal risks for host governments. The document recommends enhancing transparency through the EITI, implementing mandatory contract registration, and using globally recognized pricing for tax calculations.

The introduction of the GST in India has created a relative bias in favor of coal-based power by increasing the cost of solar PV generation while reducing the variable costs for existing coal plants. While total tax subsidies for both sources decreased, the absolute level of support for coal remains more than double that for solar PV. The analysis indicates that the GST increased the LCOE for solar park projects by 5.84% and decreased the variable LCOE for coal plants using domestic coal by approximately 1.6%.

The report analyzes Indonesia's fiscal shift from fossil fuel dependence, noting a significant drop in upstream oil and gas revenues from 35% of total revenues in 2001 to 6% in 2016. It argues that current fuel and electricity subsidies are inefficient and that the government underutilizes the fiscal space available through energy consumption taxes compared to other BRIICS countries. The document advocates for investing subsidy savings and fossil fuel taxes into social development, economic diversification, and renewable energy.

Indonesia has successfully reduced its fiscal reliance on oil and gas production, but continues to struggle with inefficient fossil fuel subsidies that benefit wealthy households and hinder the growth of renewable energy. While the government has diversified its economy into manufacturing and finance, contradictory policies—such as maintaining price caps on fuels and prioritizing coal for electrification—create risks of stranded assets and environmental degradation. The report argues for the complete removal of fossil fuel subsidies, the implementation of consumption-based energy taxes, and the strategic investment of resource rents into social safety nets and renewable energy infrastructure to ensure a just transition.

South Africa is identified as the most economically unequal country in the world, with the wealthiest 10% of the population holding 90–95% of the wealth. The document asserts that poverty rates have increased, with 55.5% of the population living below the official national upper bound poverty line in 2015. It criticizes the government's use of fiscal austerity, noting real-term spending cuts in health and education, and argues that the tax system is insufficiently progressive, citing a corporate income tax rate that dropped from 50% in 1990 to 28% today. The report concludes that these policy choices threaten the fulfillment of social and economic rights and the achievement of the 2030 Agenda.