Decarbonisation and intergovernmental fiscal relations
Policy challenges and reform options
This paper explores the nexus between decarbonisation and intergovernmental fiscal
relations, focusing on related challenges and reform options. It highlights the significant
role of subnational governments in tackling climate change. Subnational and national
governments share responsibilities in areas such as taxation, spending and regulation
pertaining to environmental protection, as well as climate change mitigation and adaptation,
which calls for effective intergovernmental co-operation to align policy objectives
and implementation strategies. The paper outlines decarbonisation requirements across
sectors and discusses subnational government involvement in service delivery, investment,
revenue generation and regulatory frameworks. Policy options to strengthen subnational
contributions to national decarbonisation goals are presented. While focusing primarily
on OECD countries, the paper acknowledges the need for improved information on subnational
decarbonisation efforts in both advanced and developing countries.
Published on June 06, 2023
In series:OECD Working Papers on Fiscal Federalismview more titles