The Future We Want

Twenty years after the original Earth Summit (Eco 92), world leaders will reconvene again in Rio de Janeiro, from June 20-22 for the United Nations Conference on Sustainable Development (Rio+20). The International Monetary Fund is exploring how macroeconomic and especially fiscal instruments can be used to address the urgent challenges of climate change; while emphasizing that social and environmental issues matter for economic performance and are themselves affected by the economy. Fiscal Instruments, a win-win for policymakers? The IMF's work includes research on getting the prices right and the right incentives to help countries address climate change and other environmental challenges. Fiscal instruments, either environmental taxes or systems of pollution rights sold by the government, are the most effective instruments for exploiting near and longer-term options for reducing emissions (e.g., investments in renewables and energy efficiency) while at the same time providing a potentially valuable source of government revenue. See full Press Release.