Fiscal Policies For Achieving Finlands Emission Neutrality Target

Download or read book Fiscal Policies for Achieving Finland’s Emission Neutrality Target written by Ian Parry and published by International Monetary Fund. This book was released on 2021-06-25 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: Finland has pledged to cut net greenhouse gas emissions to zero by 2035 and has sectoral targets for deploying electric vehicles, phasing out coal generation, and oil-based space heating. Fiscal policies at the national and sectoral level could play a critical role in achieving these objectives. Carbon dioxide emissions are already priced significantly in Finland but prices vary substantially across fuels and sectors. The paper discusses a reform to both scale up, and progressively harmonize, pricing while using revenues to address equity issues. It also discusses the potential use of revenue-neutral feebate schemes to strengthen mitigation incentives for the transportation, industry, building, forestry, and agricultural sectors.