Environmental Governance and Greening Fiscal Policy

This book addresses the increasingly urgent question: How can governments be made more accountable for the quality of their environmental stewardship?

It explores:

• Enhanced national State of the Environment reporting and integration of environmental outcomes in key national indicators.
• Mainstreaming environmental goals, targets, and risks by integrating them in fiscal policy and the annual budget—a government’s most important policy instrument.
• Promoting sustainability by progressively exposing and eliminating harmful tax and expenditure policies, putting a price on pollution, and providing environmental public goods.
• Civil society environmental monitoring.

The book combines in-depth assessment of the latest climate/green budgeting literature and country practices with discussion of how to implement green fiscal policies. The framework is deliberately ambitious given the severity, scale, and urgency of climate changeand biodiversity loss.

The book will be of interest to ministry of finance, budget, and planning officials, to environment sector agencies, oversight institutions, international organizations, civil society organizations, and to academics and students in the fields of environmental studies, development studies, economics, public finance, and public policy.  

“Petrie sets out, clearly and compellingly, institutional structures to support the development of the tax and other policies needed to turn glib promises into reality.” (Michael Keen, Former Deputy Director, Fiscal Affairs Department, International Monetary Fund; Founding Editor, International Tax and Public Finance)

“Petrie shows how and why environmental considerations can be brought into the heart of economic policy making. A must read for all economic and environmental policy advisers.” (Jonathan Boston, Professor, Victoria University of Wellington, New Zealand) 

“This is the clearest guide for civil society activists to transparency and accountability of governments for environmental stewardship.” (Vivek Ramkumar, Senior Director of Policy, International Budget Partnership)

“Compared to economic and social goals, governments have typically not emphasized the environment and biodiversity in their policy pronouncements. Petrie explains why this is thecase and what can be done about it. His sharp analytical focus provides essential concrete advice for governments on how to lift the prominence of green issues through environmental reporting and target setting, greening fiscal policies, and mainstreaming the environment in the annual budget cycle. It’s an important call to action.” (Edward Olowo-Okere, Global Director, Governance, The World Bank)

“Petrie provides a clear articulation of the power of budgeting and how it can be applied to progress climate and environmental objectives.” (Jon Blondal, Head of Public Management and Budgeting, Organization for Economic Cooperation and Development, Paris)

“Governments’ inaction has put us and future generations in peril. In his wide-ranging and thoughtful book, Petrie demonstrates how this tide can be turned with new values frameworks and effective environmental governance. The time to take action is now. Start by reading this book.” (Jane Davidson, Author of #futuregen: Lessons from a Small Country)

“Climate change, lost biodiversity, and other environmental problems pose increasingly compelling challenges to the planet and thus to human well—being. We need innovative, comprehensive solutions that make environmental sustainability a priority and integrate it into the core of governmental responsibilities and capacities. Murray Petrie has set out an agenda for doing just that—for using budgetary, economic, and social policy as a path to living within the limits of the planet. He sets out a broad, creative agenda that brings environmental issues into the core of what it means to govern.  I strongly recommend this book for anyone interested in future generations.” (Daniel J. Fiorino, Director, Center for Environmental Policy, School of Public Affairs, American University)

“In view of the growing alarm about environmental degradation and climate change and the blunt failure of governments to respond adequately, Petrie has a response as forceful, systematic and compelling, as it is simple and clear: it’s the budget! With exceptional expertise in fiscal transparency and how a multi-stakeholder approach can be used to address complex problems that need sustained commitments, Petrie offers here a series of innovative and pathbreaking solutions that involve use of the fiscal system to improve environmental outcomes. And unless governments bring the tools of fiscal policy and public spending to bear on this issue, time will run out and catastrophe will be inevitable.” (Juan Pablo Guerrero, Network Director, Global Initiative for Fiscal transparency)

“This thought-provoking book meets the needs of governments, the media and citizens for better analysis and information on both the environmental impacts of fiscal policy and the fiscal impacts of environmental policies. Its comprehensive framework will help policymakers present more visibly environmental outcome measures, risks, goals, andtargets in government strategy and fiscal policy alongside the prevailing emphasis on economic goals, targets, and data.” (Richard Allen, Public Finance Advisor and Consultant, Co-Editor of The International Handbook of Public Financial Management)

“Behind governments’ many fine words and promises lies a massive failure to provide credible and effective institutions to address climate change and other deepening environmental emergencies. In this much-needed book, informed and informative, Petrie sets out, clearly and compellingly, institutional structures to support the development of the tax and other policies needed to turn glib promises into reality.” (Michael Keen, Former Deputy Director, Fiscal Affairs Department, International Monetary Fund Founding Editor, International Tax and Public Finance)

“Murray Petrie's timely and lucid book makes a vital conceptual and practical contribution to the urgent task of improving national-level environmental governance. It provides a robust and comprehensive guide for bringing environmental considerations into the heart of economic policy making, not least through the annual budget process. A must read for all economic policy advisers.” (Jonathan Boston, Author of ‘Governing for the Future: Designing Democratic Institutions for a Better Tomorrow, Professor, Victoria University of Wellington, New Zealand)

“How government taxation and spending impacts on the environment is becoming front and centre to the future livelihoods of the world’s poorest. This is the clearest guide for civil society activists to transparency and accountability of governments for environmental stewardship.” (Vivek Ramkumar, Senior Director of Policy, International Budget Partnership)

Murray Petrie has wide experience as a public official, international civil servant, consultant, civil society activist, and academic researcher in public sector governance, financial management, and the interface between fiscal policy and the environment. He has published widely in these areas and is a member of the IMF’s Panel of Fiscal Experts and the OECD Expert Group on Green Budgeting.