Suphachol Suphachalasai, Hasan Dudu, Diala Al Masri, Fabiana Machado, Junko Mochizuki, and Karlygash Zhunussova
This technical assistance conducts a climate policy diagnostic for Jordan, covering climate adaptation and mitigation policy, as well as enabling institutions. Jordan faces acute challenges of climate-food-water nexus—innovative climate policy approaches are key, given limited fiscal space. While Jordan needs to strengthen the investment climate for climate investment through streamlining existing policies and alleviating critical barriers, making social policy more shock-responsive and strengthening risk management can go a long way in building resilience. As climate-related risks globally intensify, the government is encouraged to move toward a risk-informed policy and financing strategy.
Diego Mesa Puyo, Zhiyong An, Thomas Benninger, and Nate Vernon
Mauritania requested capacity development from the Fiscal Affairs Department on carbon taxation, fossil fuel pricing and fiscal aspects of hydrogen development. This is a high-level summary of the technical assistant and the recommendations provided to the authorities. The report assesses options to gradually introduce a carbon tax to bring the country in line with its Nationally Determined Contribution for 2030 and net-zero pledge for 2050, including targeted support for vulnerable households. It then reviews approach to price fossil fuel products and proposes a revised methodology better aligned with international petroleum markets, along with a fiscally neutral smoothing mechanism to mitigate the impact of abrupt price changes on Mauritanian consumers. Finally, the report evaluates fiscal aspects related to the development of the low and zero-emissions hydrogen to ensure the country continues to position itself as an attractive investment destination without foregoing future revenue streams.
Katja Funke, Alberto Garcia Huitron, and Didier Tabaro
Cabo Verde faces development challenges from multiple structural factors, including insularity, territorial discontinuity, fragility of ecosystems, and scarcity of natural resources, namely water and arable land. Climate change implications are amplifying these challenges. As an island extension of the arid Sahel zone, Cabo Verde faces severe water shortage, which the country addresses more and more through energy intensive desalination, using electricity produced largely by thermal power plants, which depend entirely on imported fossil fuels. The resulting high energy prices directly impact the cost of water production. In conjunction with climate change induced aridity, the energy-water-climate nexus presents the core development challenge for the country.