Function 2 · Fiscal policy
Function 2 — Fiscal policy
Reforming tax, pricing, and budget instruments to transform the economy.
Just transition5 action areas
The five action areas
F2a
Transforming economic incentives through carbon pricing, subsidy reform, and other fiscal policy measures
Combining pricing, subsidy reform, and other fiscal measures to influence investment and consumption across the economy.
3 sub-areas
F2b
Future-proofing public finances by redesigning the tax system for net zero and climate resilience
Preparing for changes in fossil fuel revenues and managing the fiscal risks associated with climate change and the transition.
2 sub-areas
F2c
Using public financial management and the budget to drive transformation
Using existing PFM systems and the budget cycle to integrate climate and nature priorities into medium-term fiscal strategies and expenditure frameworks, track spending, and inform future allocations.
F2d
Greening public investment management
Incorporating emissions reduction and climate resilience into the appraisal, selection, and management of public investment.
F2e
Greening public procurement
Using public procurement rules and purchasing decisions account for emissions, resilience, and costs over the life of goods, services, and infrastructure.