Using Carbon Revenues
published in January 2020
An overview of national experiences regarding the use of revenues from carbon taxation and carbon markets
In 2019, 42% of the aggregate carbon revenue was channeled to the general state budget, 47% was allocated to environmental or broader projects, 5% went to tax cuts and 6% to direct transfers to families or businesses.
Countries that have successfully implemented carbon pricing have managed to align the use of carbon revenues with national priorities, associating reform with a discourse that is in line with their development agenda.
Regardless of the objective sought, governance issues are crucial and range from transparency in revenue use, and clarity of trans fers and compensation, to the legitimacy of the reform process.