International evidence on the potential role of fiscal levers to deliver reductions in greenhouse gas emissions

The project consisted of a comprehensive review of the potential role of fiscal levers in achieving reenhouse as (GHG) emission reductions at the international level, with a particular focus on their potential applicability in Scotland. The work analysed international fiscal measures -including taxes, levies, duties and charges- aimed at reducing GHG emissions and environmental pollution, and assessed their effectiveness, implementation challenges and legal implications.

The project included an extensive literature review of academic and grey literature, targeted interviews with international experts and stakeholders, and the development of case studies on selected international experiences. In addition, the work involved the creation of a typology of fiscal levers and the assessment of their relevance and feasibility within the Scottish legal, regulatory and institutional context.

The consultancy also analysed existing fiscal levers currently available in Scotland and evaluated the potential applicability of additional fiscal instruments according to devolved competencies and legal constraints. The final outputs included analytical reports and recommendations assessing the effectiveness, feasibility and potential distributional impacts of the identified fiscal measures, as well as their contribution to the objectives of Scotland’s climate change policies.