Fiscal Policy Options to Accelerate Emissions Reductions in Belgium Belgium: Belgium

Author/Editor:

Nate Vernon

Publication Date:

March 2, 2023

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

Belgium’s current policies fall short of achieving its climate targets and promoting emissions reductions at limited economic costs. We recommend that domestic carbon pricing form the centerpiece of an emissions reduction package, as pricing promotes mitigation at the lowest economic cost, can be phased in as international energy prices fall, and generates revenue to compensate vulnerable households and reduce taxes on productive activities. Sectoral policies, such as subsidy-tax schemes to promote low emissions vehicles, should reinforce carbon pricing and regional efforts, while the social protection system can be made more efficient and environmentally friendly by switching from energy subsidies to income-based support. Belgium should also promote dialogue at the EU-level to harmonize ETS prices and include all sectors under a single trading scheme.

Series:

Selected Issues Paper No. 2023/017

Subject:

Frequency:

Regular

English

Publication Date:

March 2, 2023

ISBN/ISSN:

9798400235795/2958-7875

Stock No:

SIPEA2023017

Pages:

41

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