The report recommends that these six nations- Brazil, Russia, India, Indonesia, China, and South Africa (BRIICS) – decarbonize and diversify their revenues or they might risk a revenue gap that could ruin the gains made by them on poverty eradication and economic development so far. This revenue gap has been estimated to grow up to USD 278 billion by 2030, equivalent to the combined total government revenues of Indonesia and South Africa in 2019. Therefore they need to better start adjusting their fiscal policies to account for declining fossil fuel use.
Titled ‘Boom and Bust: The Fiscal Implications of Fossil Fuel Phase-Out in Six Large Emerging Economies’, the report highlights the vulnerabilities of BRIICS for their heavy dependence on fossil fuel.
All countries around the world have to cut back on fossil fuel use to comply with the Paris Agreement, which is a legally binding international treaty on climate change adopted by 196 Parties on 12 December 2015. Its goal is to limit global warming to well below 2, preferably to 1.5 degrees Celsius, compared to pre-industrial levels by reducing greenhouse gas emissions as soon as possible to achieve a climate neutral world by mid-century.
by Seema Sharma
12/07/2022
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