2022 State Budget: Fiscal Policy and Structural Reform

Global Trends Strengthening Attention to Climate Change UNFCCC-COP26 GOALS B G20 FORUM The G20 has encouraged countries' commitments on the issue of climate change, including phasing out subsidies on fossil fuels. 01 Secure global net zero by mid- 02 Adapt to protect communities ecosystems 03 Mobilise finance 04 Work together to deliver ⚫ finalise the Paris Rulebook century and keep 1.5 degrees within reach and natural habitats protect and restore • build defences, deforestation warning ⚫developed countries mobilise at least $100bn in climate finance per year by 2020. systems and •International switch to resilient electric vehicles infrastructure financial institutions unleashing ⚫ collaboration between governments, businesses civil society. and encourage and agriculture the trillions in private investment in and public finance sector ⚫ accelerate the phase-out of coal ⚫ curtail speed up the EUROPEAN UNION The European Union is discussing a Border Carbon Arrangement policy (part of the EU Green Deal) or the imposition of import taxes on goods that produce emissions according to the amount of emissions produced INTERNATIONAL FINANCE INSTITUTIONS Global financial institutions such as Goldman Sachs, have committed to start reducing and even stopping financing for projects related to fossil fuels. The global trend of ESG funds (funds that pay attention to ESG principles in their investment activities) has been increasing rapidly since 2020. renewables Countries will be encouraged to achieve Net Zero Emissions by 2050 in COP26 Source: Ministry of Finance 99

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