Islamic Republic of Mauritania: Climate Mitigation Policy Diagnostic

By Diego Mesa Puyo, Zhiyong An, Thomas Benninger, Nate Vernon-Lin

May 31, 2024

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Diego Mesa Puyo, Zhiyong An, Thomas Benninger, and Nate Vernon-Lin. Islamic Republic of Mauritania: Climate Mitigation Policy Diagnostic, (USA: International Monetary Fund, 2024) accessed December 21, 2024

Also available in: français

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.

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

Keywords: Carbon Pricing, Carbon tax, Carbon Taxes, Climate Mitigation, Climate mitigation policy diagnostic, Climate policy, Fiscal Policy, Fuel prices, High-level summary, Hydrogen development, Non-renewable resources, Price setting, Tax volatility

Publication Details

Pages:

5
Volume:

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DOI:

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Issue:

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Series:

High Level Summary Technical Assistance Report No. 2024/022
Stock No:

HLSEA2024022
ISBN:

9798400275234
ISSN:

2959-4103

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