Green Fiscal Policy

INTERNATIONAL TRAINING ON GREEN FISCAL POLICY

COURSE BACKGROUND

The COVID-19 pandemic starkly illuminated the fragilities of global economies and exacerbated existing inequalities. Even before this crisis, economies were characterized by inefficient resource use, contributing to environmental degradation, biodiversity loss, and climate change. In response, there’s a growing demand from citizens and governments alike for a departure from traditional approaches in favor of innovative, green policies that can foster a more sustainable and resilient future.

ECAS Institute recognizes the transformative potential of green fiscal policies in driving sustainable recovery and long-term development. These policies can address inefficiencies in public expenditures, generate additional fiscal revenues, and channel investments towards both immediate relief measures and long-term environmental goals. While the foundational content of this course was developed prior to the pandemic, its relevance to current policy discussions on “building forward better” is profoundly amplified.

This course aims to bridge the knowledge gap, ensuring that governments, businesses, and civil society are aware of the opportunities presented by green fiscal policies and possess the necessary knowledge and skills to leverage them. By providing an introduction to these crucial tools and approaches, ECAS seeks to empower participants to foster a more sustainable future.

COURSE OBJECTIVES OF THE TRAINING

Participants completing the course will be able to:

1. Explain the rationale for greater use of green fiscal policy.
2. List different fiscal instruments to promote desirable economic, social, and environmental outcomes.
3. Describe the key stages of the policy cycle.
4. Highlight the main opportunities and challenges presented by the energy, transport, and waste management sectors in the context of green fiscal policy.
5. Outline how international collaboration enhances fiscal policy action taken at the national level.

WHAT YOU WILL LEARN

This course aims to provide participants with a solid understanding of fiscal policy instruments and reform strategies available to policymakers to advance the green economy transition. You will learn:

• The compelling need for green fiscal policy in the current global economic and environmental context.
• A range of different fiscal instruments designed to promote desirable economic, social, and environmental outcomes.
• The key stages of the policy cycle, from formulation to implementation and evaluation.
• The main opportunities and challenges for applying green fiscal policy within critical sectors such as energy, transport, and waste management.
• How international collaboration can significantly enhance the effectiveness of national fiscal policy actions towards sustainability.

DURATION AND PROGRAM

This is a structured course containing five lessons. The course is designed to provide participants with a solid understanding of fiscal policy instruments and reform strategies. The program structure allows for efficient learning of key concepts and their practical applications.

TARGET PARTICIPANTS

This course is designed for interested participants from government, business, and civil society who seek an introduction to green fiscal policy tools and approaches for fostering a more sustainable future. Potential participants include:

• Policymakers in national and sub-national governments.
• Officials in international and regional organizations.
• Professionals in business and industry seeking to understand policy impacts.
• Representatives from civil society organizations focused on environmental sustainability and economic development.
• Academics and Researchers interested in green economy and public finance.

TRAINING MODULES

The course is structured into five concise lessons, each focusing on a distinct aspect of green fiscal policy:

No	Module	Details
1.	The Need for Green Fiscal Policy	This lesson explains the fundamental rationale behind adopting green fiscal policies, particularly in the context of global economic fragilities and environmental degradation. The key topics include: The link between inefficient resource use, environmental degradation, and economic vulnerabilities. The imperative for a departure from “business-as-usual” approaches. How greening recovery efforts can build well-being and resilience post-crisis. The role of fiscal policy in addressing market failures and environmental externalities.
2.	Fiscal Instruments for Greening the Economy	This lesson details the various fiscal tools and instruments available to policymakers to promote sustainable economic, social, and environmental outcomes. The key topics include: Environmental taxes and charges (e.g., carbon taxes, pollution levies). Environmentally harmful subsidies and their reform. Green public procurement. Incentives for green investments (e.g., tax breaks, grants). Deposit-refund schemes and other market-based instruments.
3.	Effective Strategies for Fiscal Reform	This lesson describes the key stages of the policy cycle and effective strategies for implementing green fiscal reforms successfully. The key topics include: Overview of the policy cycle: agenda setting, formulation, adoption, implementation, evaluation. Stakeholder engagement and building political will for reform. Phasing in reforms and managing transition costs. Ensuring equitable outcomes and addressing social impacts of reforms. Communication strategies for public acceptance of green fiscal measures.
4.	Applying Green Fiscal Policy in Key Sectors	This lesson highlights the practical application of green fiscal policies within specific, high-impact sectors like energy, transport, and waste management. The key topics include: Green fiscal policies in the energy sector (e.g., fossil fuel subsidy reform, renewable energy incentives). Fiscal measures for sustainable transport (e.g., road pricing, electric vehicle incentives). Policies for waste management and circular economy (e.g., waste taxes, producer responsibility schemes). Identifying sector-specific opportunities and challenges for reform.
5.	Collaborating for Impact	This lesson outlines the importance of international collaboration in enhancing the effectiveness and reach of green fiscal policy actions taken at the national level. The key topics include; Benefits of international cooperation on green fiscal policy (e.g., preventing carbon leakage, sharing best practices). Role of international organizations (e.g., UNEP, OECD, IMF) in promoting green fiscal reforms. Case studies of successful international collaboration initiatives. The role of national governments in multilateral efforts for sustainable finance.

TRAINING STYLE

The modules will be taught through PowerPoint presentations, and lectures and will include a case study/field visit, breakout sessions, case studies and other interactive discussion components.

The course will also include a few guest speakers, both in person and via Zoom and other online learning platforms for overseas speakers. This provides useful real-world insights alongside the more theoretical aspects of the course.

The conference faculty shall consist of experienced decision makers, as well as practitioners and representatives from established educational and research institutions active around climate change, engineering and international development. Throughout the course, theoretical presentation of concepts will be moderated and more group discussions and plenary engagements will be optimized. PowerPoint presentations will be made by facilitators and resource persons, to highlight key concepts before embarking on group work.

GENERAL NOTES

• Training manuals and additional reference materials are provided to the participants.
• Upon successful completion of this course, participants will be issued with a certificate.
• We can also do this as a tailor-made course to meet organization-wide needs. Contact us to find out more: info@ecasiafrica.org.
• Payment should be sent to our bank account before the start of training and proof of payment sent to: info@ecasiafrica.org.

ABOUT ECAS INSTITUTE

The ECAS Institute designs and delivers independent and targeted training, research, and consulting services. Our work focusses on climate change and resilience building, carbon markets, renewable energy, nature-based solution, biodiversity conservation, agriculture and food systems, We are located in Nairobi Kenya and work across the African region. We have implemented training and research assignments in Kenya, Tanzania, Uganda, South Sudan, Somalia, Malawi, Rwanda, Congo, and South Africa. Globally, we have supported our partners from the UK, Denmark, Italy, Sweden, Germany, and USA.