- Green fiscal policy plays a critical role in responding to global warming. Green fiscal consolidation includes well-designed tax policies that raise the price of carbon, together with non-tax instruments such as emission trading systems, feebates or regulations.
- Green fiscal consolidation would need to draw from experience in other nations wisely. Previous episodes show that spending-driven adjustments vis-à-vis revenue-driven ones are more likely to stabilise debts and that large consolidations need multiple instruments and tools to succeed.
- To ensure the cooperation between central and local governments is effective, an integrated approach is required with the right regulatory framework to extend the fiscal rules towards green consolidation.
- There is a need to create an ASEAN Green Fiscal Policy Network (AGFPN) and an ASEAN Data Carbon Pricing Platform (ADCPP) for the AMS to meet and discuss through forums and dialogues to exchange and share ideas in green fiscal/ budgetary policy, instruments, tools, models and other issues and challenges that they might face in their efforts to adopt green fiscal consolidation towards a green economy in their respective states and the region.
The development of this report was supported by the Energy Foundation China through the project “Measures and Investments for Clean Energy and Power Sector Resilience in ASEAN”. The views expressed herein are those of the authors and do not necessarily represent the views of Energy Foundation China.
