Box A1. Carbon Taxes

<table><thead><tr><th>Instrument</th><th>No. of countries</th><th>Aspects of the instruments</th><th>No. of countries</th><th>Expectation and objectives</th><th>No. of countries</th><th>Barriers</th><th>No. of countries</th></tr></thead><tbody><tr><td rowspan="5">Carbon tax</td><td rowspan="5">7</td><td>Fixed sources</td><td>1</td><td>Support: Support environmental policy through fiscal policy.</td><td>4</td><td>Low Prices: Current (or potential) prices are too low to be an effective incentive.</td><td>1</td></tr><tr><td>Mobile sources</td><td>6</td><td>Incentive: Corrective incentive, elimination of externalities and dissuasive purpose.</td><td>5</td><td>High Prices: Difficult to implement high prices given economic/political/social contingency/fair transition. Leakage is included where high prices may displace activities to lower tax areas.</td><td>3</td></tr><tr><td>Tax revenue neutral: The establishment of the tax does not represent an additional tax burden for taxpayers.</td><td>2</td><td>Revenue: Raise revenue to finance environmental policy or economic policy that supports the environment.</td><td>4</td><td>Adding new taxes: No desire to add more taxes/difficulty to implement new taxes.</td><td>3</td></tr><tr><td>Income associated to expense: Income cannot be directly associated to a specific expense.</td><td>4</td><td>Fiscal origin: Generally, taxes on fuels not defined in carbon emissions have a fiscal revenue origin.</td><td>3</td><td>Lack of technical knowledge and information</td><td>4</td></tr><tr><td>Taxes on fuels or emissions not defined in terms of CO2 are highlighted.</td><td>5</td><td></td><td></td><td>Other barriers: e.g., lack of public transportation, political difficulties to implement carbon pricing.</td><td>2</td></tr></tbody></table>

Note: The "N" columns indicate the number of countries associated with the one specified in the column to the immediate left. Countries may appear in more than one response, thus, columns do not add up to total number of countries. The aspects column identifies countries that already have a carbon pricing mechanism or those interested in implementing one.
Box A1. Carbon Taxes

<table><thead><tr><th>Instrument</th><th>No. of countries</th><th>Aspects of the instruments</th><th>No. of countries</th><th>Expectation and objectives</th><th>No. of countries</th><th>Barriers</th><th>No. of countries</th></tr></thead><tbody><tr><td rowspan="5">Carbon tax</td><td rowspan="5">7</td><td>Fixed sources</td><td>1</td><td>Support: Support environmental policy through fiscal policy.</td><td>4</td><td>Low Prices: Current (or potential) prices are too low to be an effective incentive.</td><td>1</td></tr><tr><td>Mobile sources</td><td>6</td><td>Incentive: Corrective incentive, elimination of externalities and dissuasive purpose.</td><td>5</td><td>High Prices: Difficult to implement high prices given economic/political/social contingency/fair transition. Leakage is included where high prices may displace activities to lower tax areas.</td><td>3</td></tr><tr><td>Tax revenue neutral: The establishment of the tax does not represent an additional tax burden for taxpayers.</td><td>2</td><td>Revenue: Raise revenue to finance environmental policy or economic policy that supports the environment.</td><td>4</td><td>Adding new taxes: No desire to add more taxes/difficulty to implement new taxes.</td><td>3</td></tr><tr><td>Income associated to expense: Income cannot be directly associated to a specific expense.</td><td>4</td><td>Fiscal origin: Generally, taxes on fuels not defined in carbon emissions have a fiscal revenue origin.</td><td>3</td><td>Lack of technical knowledge and information</td><td>4</td></tr><tr><td>Taxes on fuels or emissions not defined in terms of CO2 are highlighted.</td><td>5</td><td></td><td></td><td>Other barriers: e.g., lack of public transportation, political difficulties to implement carbon pricing.</td><td>2</td></tr></tbody></table>

Note: The "N" columns indicate the number of countries associated with the one specified in the column to the immediate left. Countries may appear in more than one response, thus, columns do not add up to total number of countries. The aspects column identifies countries that already have a carbon pricing mechanism or those interested in implementing one.
Box A2. Credit Markets and Tradable Emissions Systems

<table><thead><tr><th>Instrument</th><th>No. of countries</th><th>Aspects of the instruments</th><th>No. of countries</th><th>Expectation and objectives</th><th>No. of countries</th><th>Barriers</th><th>No. of countries</th></tr></thead><tbody><tr><td rowspan="4">Credit Markets and Tradable Emissions Systems</td><td rowspan="4">8</td><td>Carbon credit markets for carbon tax offset mechanisms.</td><td>3</td><td>Support: Support environmental policy through economic policy, including meeting international commitments (NDC, ESG, etc.).</td><td>5</td><td>Low Prices: The prices of the associated carbon tax are low. There are few projects in the credit markets that are convenient to buying the credits in lieu of paying the tax.</td><td>1</td></tr><tr><td>Emissions trading system (Cap and Trade or similar).</td><td>4</td><td>Mobilize resources: Promote investment in green sectors and projects that absorb/reduce emissions.</td><td>4</td><td>Financial Additionality: financing from carbon credit markets should be directed to projects where financial resources provide financial viability.</td><td>2</td></tr><tr><td>Develop credit markets associated with Article 6</td><td>3</td><td>Revenues: Raise to finance environmental policy or economic policy that supports the environment (subsidies)/cover fiscal deficit for environmental policy</td><td>2</td><td>Land tenure: Lack of legal land tenure makes it difficult to use land for carbon credit market projects.</td><td>2</td></tr><tr><td></td><td></td><td>Incentive: Corrective incentive, elimination of externalities and dissuasive purpose of the emissions trading system.</td><td>2</td><td>MRV: Institutional capacity to monitor and</td><td>1</td></tr><tr><td></td><td></td><td></td><td></td><td></td><td>Information and/or knowledge: Lack of information to develop markets in key sectors.</td><td>2</td></tr><tr><td></td><td></td><td></td><td></td><td></td><td>Illegal activities: Illegal deforestation hinders the effectiveness of this type of instrument.</td><td>1</td></tr></tbody></table>

Note: The "N" columns indicate the number of countries associated with the one specified in the column to the immediate left. Countries may appear in more than one response, thus columns do not add up to total number of countries. The characteristics column identifies countries that already have a carbon pricing mechanism or those that are interested in implementing one.
Box A2. Credit Markets and Tradable Emissions Systems

<table><thead><tr><th>Instrument</th><th>No. of countries</th><th>Aspects of the instruments</th><th>No. of countries</th><th>Expectation and objectives</th><th>No. of countries</th><th>Barriers</th><th>No. of countries</th></tr></thead><tbody><tr><td rowspan="5">Credit Markets and Tradable Emissions Systems</td><td rowspan="5">8</td><td>Carbon credit markets for carbon tax offset mechanisms.</td><td>3</td><td>Support: Support environmental policy through economic policy, including meeting international commitments (NDC, ESG, etc.).</td><td>5</td><td>Low Prices: The prices of the associated carbon tax are low. There are few projects in the credit markets that are convenient to buying the credits in lieu of paying the tax.</td><td>1</td></tr><tr><td>Emissions trading system (Cap and Trade or similar).</td><td>4</td><td>Mobilize resources: Promote investment in green sectors and projects that absorb/reduce emissions.</td><td>4</td><td>Financial Additionality: financing from carbon credit markets should be directed to projects where financial resources provide financial viability.</td><td>2</td></tr><tr><td>Develop credit markets associated with Article 6</td><td>3</td><td>Revenues: Raise to finance environmental policy or economic policy that supports the environment (subsidies)/cover fiscal deficit for environmental policy</td><td>2</td><td>Land tenure: Lack of legal land tenure makes it difficult to use land for carbon credit market projects.</td><td>2</td></tr><tr><td></td><td></td><td>Incentive: Corrective incentive, elimination of externalities and dissuasive purpose of the emissions trading system.</td><td>2</td><td>MRV: Institutional capacity to monitor and</td><td>1</td></tr><tr><td></td><td></td><td></td><td></td><td>Information and/or knowledge: Lack of information to develop markets in key sectors.</td><td>2</td></tr><tr><td></td><td></td><td></td><td></td><td>Illegal activities: Illegal deforestation hinders the effectiveness of this type of instrument.</td><td>1</td></tr></tbody></table>

Note: The "N" columns indicate the number of countries associated with the one specified in the column to the immediate left. Countries may appear in more than one response, thus columns do not add up to total number of countries. The characteristics column identifies countries that already have a carbon pricing mechanism or those that are interested in implementing one.
Box A3. The Instrument Is Not Specified

<table><thead><tr><th>Instrument</th><th>No. of countries</th><th>Aspects of the instruments</th><th>No. of countries</th><th>Expectation and objectives</th><th>No. of countries</th><th>Barriers</th><th>No. of countries</th></tr></thead><tbody><tr><td rowspan="4">They express interest but have not yet defined the instrument(s).</td><td>2</td><td>No instruments have been defined</td><td>2</td><td>Support: Support environmental policy through economic policy.</td><td>2</td><td>Defining the price the mechanism should have</td><td>1</td></tr><tr><td></td><td></td><td></td><td>Comply with international commitments (NDC, ESG, etc.) or national legal commitments.</td><td>2</td><td>Technical knowledge</td><td>1</td></tr><tr><td></td><td></td><td></td><td>Corrective incentives: Correcting</td><td>1</td><td>High levels of informality hinder credit markets.</td><td>1</td></tr><tr><td></td><td></td><td></td><td>Revenues: Raising funds to finance policy without specifying its objective</td><td>1</td><td>Social and political difficulty of imposing new taxes.</td><td>1</td></tr></tbody></table>

Note: The "N" columns indicate number of countries associated with the one specified in the column to the immediate left. Countries may appear in more than one response thus columns do not add up to total number of countries. The characteristics column identifies countries that already have a carbon pricing mechanism or those that are interested in implementing one.
Box A3. The Instrument Is Not Specified

<table><thead><tr><th>Instrument</th><th>No. of countries</th><th>Aspects of the instruments</th><th>No. of countries</th><th>Expectation and objectives</th><th>No. of countries</th><th>Barriers</th><th>No. of countries</th></tr></thead><tbody><tr><td rowspan="4">They express interest but have not yet defined the instrument(s).</td><td rowspan="4">2</td><td rowspan="4">No instruments have been defined</td><td rowspan="4">2</td><td>Support: Support environmental policy through economic policy.</td><td rowspan="4">2</td><td>Defining the price the mechanism should have</td><td rowspan="4">1</td></tr><tr><td>Comply with international commitments (NDC, ESG, etc.) or national legal commitments.</td><td>Technical knowledge</td></tr><tr><td>Corrective incentives: Correcting</td><td>High levels of informality hinder credit markets.</td></tr><tr><td>Revenues: Raising funds to finance policy without specifying its objective</td><td>Social and political difficulty of imposing new taxes.</td></tr></tbody></table>

Note: The "N" columns indicate number of countries associated with the one specified in the column to the immediate left. Countries may appear in more than one response thus columns do not add up to total number of countries. The characteristics column identifies countries that already have a carbon pricing mechanism or those that are interested in implementing one.
Box A4. Consolidated All Instrument

<table><thead><tr><td>Instrument</td><td>No. of countries</td><td>Aspects of the instruments</td><td>No. of countries</td><td>Expectation and objectives</td><td>No. of countries</td><td>Barriers</td><td>No. of countries</td></tr></thead><tbody><tr><td>Carbon Tax.</td><td>7</td><td>Tax revenue neutral: Establishment of the tax does not represent an additional tax burden for taxpayers.</td><td>1</td><td>Support: Support environmental policy through fiscal policy.</td><td>8</td><td>High/Low Prices: Difficult to implement high prices given the economic/political/social contingency/fair transition. Conversely, current (or possible) prices are identified as very low.</td><td>3</td></tr><tr><td>Carbon Credit Markets.</td><td>6</td><td>Non-affectation: The income cannot be directly associated to a specific expense.</td><td>4</td><td>Incentive: Corrective incentive, elimination of externalities and dissuasive purpose.</td><td>7</td><td>Adding new taxes: Do not want to add more taxes or identify difficulty in implementing new taxes.</td><td>4</td></tr><tr><td>Transmittable Emission Systems.</td><td>4</td><td>Instrumentos similares: Se destacan instrumentos similares.</td><td>5</td><td>Revenue: Raise revenue to finance environmental policy or economic policy that supports the environment.</td><td>5</td><td>Lack of technical knowledge, information or skills.</td><td>6</td></tr><tr><td>No definition has been made.</td><td>2</td><td>Carbon credit markets for a system of carbon tax offsets.</td><td>3</td><td>Mobilize resources: Promote investment in green sectors and projects that absorb/reduce emissions.</td><td>4</td><td>Financial Additionality: financing from carbon credit markets should be directed at projects where financial resources provide financial viability.</td><td>2</td></tr><tr><td></td><td></td><td>The markets for carbon credits associated with Article 6</td><td>3</td><td></td><td></td><td>Land tenure: Lack of legal land tenure makes it difficult to use land for carbon credit market projects.</td><td>2</td></tr></tbody></table>

Note: The "N" columns indicate the number of countries associated with the one specified in the column to the immediate left. Countries may appear in more than one response, thus, columns do not add up to total number of countries. The characteristics column identifies countries that already have a carbon pricing mechanism or those that are interested in implementing one.
Box A4. Consolidated All Instrument

<table><thead><tr><td>Instrument</td><td>No. of countries</td><td>Aspects of the instruments</td><td>No. of countries</td><td>Expectation and objectives</td><td>No. of countries</td><td>Barriers</td><td>No. of countries</td></tr></thead><tbody><tr><td>Carbon Tax.</td><td>7</td><td>Tax revenue neutral: Establishment of the tax does not represent an additional tax burden for taxpayers.</td><td>1</td><td>Support: Support environmental policy through fiscal policy.</td><td>8</td><td>High/Low Prices: Difficult to implement high prices given the economic/political/social contingency/fair transition. Conversely, current (or possible) prices are identified as very low.</td><td>3</td></tr><tr><td>Carbon Credit Markets.</td><td>6</td><td>Non-affectation: The income cannot be directly associated to a specific expense.</td><td>4</td><td>Incentive: Corrective incentive, elimination of externalities and dissuasive purpose.</td><td>7</td><td>Adding new taxes: Do not want to add more taxes or identify difficulty in implementing new taxes.</td><td>4</td></tr><tr><td>Transmittable Emission Systems.</td><td>4</td><td>Instrumentos similares: Se destacan instrumentos similares.</td><td>5</td><td>Revenue: Raise revenue to finance environmental policy or economic policy that supports the environment.</td><td>5</td><td>Lack of technical knowledge, information or skills.</td><td>6</td></tr><tr><td>No definition has been made.</td><td>2</td><td>Carbon credit markets for a system of carbon tax offsets.</td><td>3</td><td>Mobilize resources: Promote investment in green sectors and projects that absorb/reduce emissions.</td><td>4</td><td>Financial Additionality: financing from carbon credit markets should be directed at projects where financial resources provide financial viability.</td><td>2</td></tr><tr><td></td><td></td><td>The markets for carbon credits associated with Article 6</td><td>3</td><td></td><td></td><td>Land tenure: Lack of legal land tenure makes it difficult to use land for carbon credit market projects.</td><td>2</td></tr></tbody></table>

Note: The "N" columns indicate the number of countries associated with the one specified in the column to the immediate left. Countries may appear in more than one response, thus, columns do not add up to total number of countries. The characteristics column identifies countries that already have a carbon pricing mechanism or those that are interested in implementing one.
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