effectively incentivize industry to introduce carbon-neutral technologies. Replacing
subsidies for fuel
use with direct cash transfers to low-income households would better target poverty while providing an
incentive to limit energy consumption. This would require improving the tax/transfer system.
Agricultural subsidies have declined as a percentage of gross farm receipts over the past decade.
However, support remains largely tied to agricultural production. This encourages overuse of land,
water,
fertilizers, and pesticides. Furthermore, environmental criteria are not
sufficiently integrated in
agricultural support programmes.
8.
More systematically tie Investment decisions for infrastructure to effectively integrating
environmental or climate mitigation and adaptation criteria, with a particular focus on mining,
chemicals, manufacturing (cement), urban development, housing and construction and waste
management.
Increased use of charges and mechanisms could mobilize the
private sector to finance
investment in infrastructure and service provision, as well as to engage the financial sector in promoting
green investment. There is also a need to improve control,
efficiency, transparency,
and integrity of
procurement processes related to infrastructure projects, and to streamline administrative procedures for
granting environmental permits. Modernization of production and facilities could be encouraged by
increasing
pollution charges, gradually at first, starting with the largest polluters.
9.
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