Greening the Economy of Europe and Central Asia

The impacts of climate change pose a significant threat to lives and livelihoods across the emerging and developing economies of Europe and Central Asia. As a result of heavy reliance on fossil fuels and energy-intensive economies, this region's per capita carbon emissions are among the highest in the world-and its total emissions exceed those of Northern, Southern, and Western Europe combined.

The clean energy transition will require massive private and public investment and a range of policies to ensure that investment is effective. The report Greening the Economy of Europe and Central Asia outlines the stakes and suggests a policy mix that can advance this transition and boost sustainable, resilient growth. As the analysis highlight, policies to consider include:

• Pricing reforms, especially the reduction or phase-out of energy subsidies, to motivate the private sector to implement decarbonization measures
• Tax instruments
• Regulatory policies such as mandating energy efficiency and improved standards for appliances to help achieve emission reduction targets
• Structural policies that strengthen macroeconomic fundamentals, deepen capital markets, and improve governance
• Social policies to reduce energy poverty and protect the poorest and most vulnerable people