Climate change and intergovernmental fiscal relations: policy reform options

Luiz de Mello and Teresa Ter-Minassian

Chapter 17 in Decentralized Governance and Climate Change, 2025, pp 337-357 from Edward Elgar Publishing

Abstract: Subnational governments (SNGs) are important actors in climate change mitigation and adaptation, as well as in managing responses to climate-change induced natural disasters. Given the climate change targets enshrined in the Paris Agreement, this chapter argues for place-based decarbonization efforts and identifies the roles and policy options for SNGs in climate change mitigation. The chapter also takes stock of estimates of investment needs for climate change adaptation and discusses the role of SNGs, the policy instruments they have at their disposal, and options for policy reform in this area. It also discusses SNGs’ role in the management of natural disasters, which requires effective prevention, risk sharing, and provisioning for post-disaster recovery and reconstruction claims on the budget. Finally, the chapter highlights the importance of effective intergovernmental cooperation to align national and subnational policy agendas in climate change mitigation and adaptation, as well as in disaster risk management.

Keywords: Climate change; Mitigation; Adaptation; Intergovernmental fiscal relation; Subnational governments (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035356379
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