Edenhofer speaking to finance ministers at OECD green tax conference

07/15/2015 - Strategies for environmental tax reform and growth were at the focus of a talk given by Ottmar Edenhofer, chief economist at the Potsdam Institute for Climate Impact Research, at a high-level conference in the run-up of the world climate summit in Paris COP21 later this year. The recent meeting was a joint initiative by the Organisation for Economic Co-operation and Development (OECD), the International Monetary Fund (IMF), the Worldbank and others. It was attended by Finance and Environment Ministers, senior policy makers and experts from more than 90 countries, including China and Indonesia, Mexico and Egypt, Sweden and Portugal.
Edenhofer speaking to finance ministers at OECD green tax conference
OECD dialogue 2015 on "Tax an the Environment". Photo: OECD

Pricing CO2 is key to achieve climate change mitigation. While emission trading systems (ETS) are one option– like the one in Europe, or the one which is currently being built up in China –, carbon taxes are another one. They are currently under-used, yet can help stabilizing investor's expectations and hence foster clean technology upscaling. At the same time they can provide much-needed revenues for states to build up infrastructure such as access to clean water or better education. In his keynote speech, concluding the conference, Edenhofer provided lessons learned from the experience of European multilevel climate governance for the international negotiations, for example of how to take into account national preferences in multinational settings. He pointed out that a coordination across a minimum price could be a crucial component following from the international climate agreement to be negotiated by governments worldwide at the Paris summit.


Weblink to OECD tax dialogue

Weblink to Ottmar Edenhofer's presentation