High-Level Summary Technical Assistance Reports

Islamic Republic of Mauritania: Climate Mitigation Policy Diagnostic

Author/Editor:

Diego Mesa Puyo ; Zhiyong An ; Thomas Benninger ; Nate Vernon

Publication Date:

May 31, 2024

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

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.

Series:

High Level Summary Technical Assistance Report No. 2024/022

Subject:

Carbon tax Climate policy Environment Fuel prices International organization Monetary policy Non-renewable resources Prices Taxes

Frequency:

Regular