The Focus Group Discussion of the green reset study has successfully held on Friday October 29, 2021. The Virtual meeting was attending 21 key stakeholder, presented the simulated scenario of green reset approach towards meeting the Net Zero Emission with the options of financing mechanism.


The participants appreciated with the simulated scenario to encourage green recovery budgeting with the option of the financial mechanism that allow decision maker to consider of the carbon pricing policy as the game changer in budget reallocation for green economy of low carbon development.


The simulated scenario results 2 key point as follows:


       Net zero, implemented to estimate the social, economic and environmental outcomes of low carbon development.

       This scenario allows to estimate the potential benefits of low carbon development, as well as the cost of realizing a net zero strategy.

       In other words, it estimates costs and benefits of reaching net zero.

       The allocation of investments in these scenarios can follow different paths, e.g. immediate vs. delayed action.


       Financing strategies, including direct public investment and carbon pricing, and different levels of private sector buy-in.

       Investment is implemented by assuming that a varying portion of the recovery package is allocated to low carbon investment (from the current value, close to 10%, up to 100% of the budget allocation included in the PEN).

       Carbon pricing is assumed to generate public revenues, which would then be reallocated to stimulate and trigger private investment.

       Different degrees of private sector buy-in are assumed ranging from a ratio of 1:1 to a ratio of 1:10.

These scenarios are required to estimate the potential contribution of the recovery package to kick-start emission reduction, but also to highlight its limited role in the medium and longer term, where carbon pricing and public incentives play a more predominant role.