Mozambique faces a range of environmental challenges and risks, including deforestation; declining fish stocks; land, water and air pollution; and loss and degradation in wetlands and rivers ,which could all be compounded by climate change and a growing population.
The focus of this report is to identify policy options for Green Fiscal Reform (GFR) in Mozambique. These policy options include the use of taxation and pricing measures, which raise revenues or lower expenditures, while furthering environmental goals by addressing environmental externalities and incentivizing green investment.
In addition to these policies, a range of viable GFR policy options that the government could consider were identified through research on the government’s environmental challenges and fiscal policy landscape, a national validation workshop, as well as a literature review and expert consultations on global best practices. These policy options could facilitate Mozambique’s green economy transformation by shifting behaviour and investment decisions, while concurrently helping to create fiscal space that could be used to promote social and green economy investments.