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Advancing More, Better and Faster Financing for Biodiversity and Ecosystem Services

Environmental fiscal reforms

Indicator:
"Resources mobilized from the removal, reform or phase-out of incentives, including subsidies, harmful to biodiversity, which could be used for the promotion of positive incentives, including but not limited to innovative financial mechanisms, that are consistent and in harmony with the Convention and other international obligations, taking into account national social and economic conditions;" --- Decision X/3, paragraph 7(13)

2008 Strategy for Resource Mobilization

Strategic objective 2.4 - "To develop and implement economic incentives that are supportive of the Convention's three objectives at local and national levels, consistent and in harmony with the other relevant international obligations"

Strategic objective 4.3 - "To explore opportunities presented by environmental fiscal reforms including innovative taxation models and fiscal incentives for achieving the three objectives of the Convention"

Africa
Botswana Management of forest reserves

Cameroon De 2010 à 2013, l’Etat a récolté plus de 540 millions de F CFA au titre de la taxe de régénération pour une moyenne annuelle de l’ordre de 135 millions de F CFA selon des données de la Sous-Direction des Agréments, MINFOF en 2013. Les revenus de la sylviculture et de l’exploitation forestière sont pris en compte dans les comptes nationaux : 539.01, 478.7, 526.5 (prix courant en Milliards de FCFA) en 2008, 2009, 2010.
1. The Forestry Taxation System and the Involvement of Local Communities in Forest Management in Cameroon
2. Structural Adjustment and Sustainable Development in Cameroon: A WWF Study
3. Incentive Measures for Sustainable Use and Conservation of Agrobiodiversity: Experiences and Lessons from Southern Africa – Commercialization as an incentive and threat for Gnetum Spp. (Eru) in Cameroon

Chad Le tarif des permis de pêche sont revus à la hausse. La Loi 14/PR/PM du 10 juin 2008 en son article 230 interdisant la pêche sans permis ; article 240 interdisant la pêche à la palangre et l’usage des filets prohibés ; article 241 interdisant l’usage des explosifs, armes à feu, substances toxiques, poisons d’origine industrielle ou végétale, ou procédés d’électrocution destinés à étourdir, endormir, affaiblir, blesser ou tuer les ressources halieutiques.

Ethiopia Incentive Measures for Sustainable Use and Conservation of Agrobiodiversity: Experiences and Lessons from Southern Africa – Experiences with community seed banks in Ethiopia

Ghana Removal of fuel subsidies

Kenya 1. Tax exemption on tree planting, Study on Stumpage Fee Reform, Entrance Fees
2. Stumpage fee reform
3. Livelihood and market incentives for sustainable land use in natural woodland areas of Kibwezi, Financial and policy instruments for the conservation of Mount Kenya Forest
4. Structural Adjustment and Environmental Linkages: A Case Study of Kenya

Madagascar des recettes d'exportation des produits forestiers (en Ariary) (2010-2012), Les recettes des Droits d’Entrée dans les Aires Protégées (DEAP) (2009-2013)
Tax exemption on equipment and materials (NR3)

Malawi 1. Tax waiver on paraffin (NR3), Fertilizer vouchers
2. Guidance note on how to integrate the environment into the budget process in Malawi (2010)

Mali Structural Adjustment and Sustainable Development in Mali: A WWF Study

Mauritius Reforming the Tax System to Promote Environmental Objectives: An Application to Mauritius (2011)

Morocco Des mesures fiscales et exonérations existent déjà comme notamment l’exonération totale et permanente des revenus des plantations sylvestres, non fruitières destinées à préserver les sols de l’érosion due aux vents et aux pluies. Des projets de réformes sont en cours d’étude pour identifier les meilleures mesures fiscales environnementales lesquelles doivent être appuyées sur des principes environnementaux identifiés dans la Charte de l’environnement (mutualisation des moyens et principe de responsabilité).

Namibia environmental taxes (Carbon Dioxide emission tax on motor vehicles, incandescent light bulbs and motor vehicle tyres)
Incentives affecting biodiversity conservation and sustainable use: the case of land use options in Namibia (1996)

Rwanda 1. Review of Existing and Potential Environmental Fiscal Reform
2. Exemptions by law on donations in general (NR3), Tax exemption on subsidy on Liquefied Petroleum Gas (LPG), Water user fees for irrigation, Annual Environmental Award for Best (Industrial) practice, Property rights for communities to participate in reforestation and afforestation on public land in all districts

Senegal Harmful practices: removal of subsidy on butane gas in energy, fertilizer subsidy in agriculture, exemption from customs duties on inputs for fishing, tax exemption on fuel for outboard engines. Positive: vessels conversion in fisheries, participatory management in forestry, mining sector to take better account conservation of biodiversity, intensification program in livestock sector

Seychelles Tax exemptions for environmental projects, for example on equipment imports (NR3)

South Africa 1. Environmental Fiscal Reform for Sustainable Development and Poverty Reduction - South Africa
2. greening the tax system (energy tax, toward a carbon tax), removing environmentally harmful subsidies (energy subsidies, agricultural support), reducing harmful subsidies and introducing positive fiscal measures

Sudan Perverse incentive to farmers in mechanized farming system

United Republic of Tanzania Trend of revenues accrued from Trophy hunting, live animal trade and photographic tourism (2009-2014)
1. Use of Economic Instruments
2. Tax exemptions on imported equipment and materials (NR3), Market arrangements between local communities and the private sector in the North-west Serengeti, Tanzania
3. Budget Support, Aid Instruments and the Environment: Tanzania Country Case Study (2008)

Uganda Non-tax revenues generated by Uganda Wildlife Authority (2002-03 to 2011-12), National Forestry Authority generated revenues (2005-2010), Sustainable Fisheries User Levy, National Environment Fact: environmental levy on used vehicles, environmental tax on polythene bags and plastic containers and goods, exemptions from import duty on garbage trucks
high taxes on second hand commodities including cars, polythene
1. Economic Instruments
2. Incentives for urban wetlands conservation in Nakivubo, Uganda
3. Removal and Mitigation of Perverse, and the Promotion of Positive, Incentives Measures for Biodiversity use and Conservation: Experiences from Uganda

Zambia Incentive Measures for Sustainable Use and Conservation of Agrobiodiversity: Experiences and Lessons from Southern Africa – Seed legislation in Zambia and possible incentives for use and conservation of agrobiodiversity

Central Asia
Kazakhstan Payment for using natural resources, environmental licenses
Uzbekistan Use permits, pollution charges, environmental taxes (1% of the cost of production and service inputs)

Eastern Asia
China 1. Transfer payments in 2010
2. Enacting or revising laws and creating sound legal foundation, economic policies favorable to the conservation and sustainable utilization of biodiversity, conducting commending activities of various forms, establishing and implementing economic incentives, working out and establishing social, cultural and ethical incentives in favor of conservation of biological diversity, supervising and inspecting the implementation of incentives
3. Emission fees
4. Environmental Fiscal Reform for Sustainable Development and Poverty Reduction – China
5. Subsidies in World Fisheries: A Reexamination (1998) – China
6. sectoral subsidies, environment-related taxes, user charges for public water supply, user charges for urban waste water treatment, pollution charge for industry, farm input subsidies, abstraction charges and irrigation water pricing, emission trading
7. tax reduction or exemption policies to promote ecological construction for nature conservation
8. Awards for nature management, preferential taxation on incomes under the Western Development Programme

Japan forest environmental tax in 33 prefectures out of 47 (around 70%), mostly as a five-year temporary measure (fixed amount ranging from JPY 500 to 1000 per person and 5 to 11% of prefectural cooperate taxes per company)
1. Conserving forest environments with tax revenues: Tochigi Prefectural Tax for Healthy Forest-Making; increased tax rates for the Prefectural Inhabitant Tax on individuals to fund water source environment programmes (Kanagawa Basic Policies for Conservation and Restoration of Water Source Environment, and Kanagawa Five-Year Action Plan for Conservation and Restoration of Water Source Environment)
2. Subsidies in World Fisheries: A Reexamination (1998) – Japan
3. Reforming Energy and Transport Subsidies: Environmental and Economic Implications - The Social Costs of Motor Vehicle Use in Japan
4. green public procurement, fiscal policy and the environment, environmental dimension of fiscal stimulus packages, greening the tax system, subsidies to promote environment-friendly products, prefectural forestry protection tax, Yokoyama greenery tax, carbon tax, emission trading
5. Introducing an Environmental Tax for Forests

Mongolia Policy environment for green development involving tax exemptions on income from more efficient, environmentally friendly equipment, support sustainable use of natural resources and reduce environmental pollution and waste. The law on income tax (article 18, 18.1.8, article 19, 19.11) provides a list of 41 instruments which are approved by the government meeting in June 2012. A decision by Parliament in June, 2013 ensured that afforestation, forest industry and wooden goods from import shall be exempt from custom tax and VAT until December, 2017. Agricultural regulations were developed to provide tax incentives on the use of registered efficient and environmentally sound equipment and technologies.
tax exemption, Annual Prize for the Environment, natural resources payment

Republic of Korea Using the liquor tax to finance environmental infrastructure, environment-related taxes, green tax reform, entrance fees and liability charge, Fishing permit system
2. Case Study on Korean Experiences Relating to the Conservation of Biodiversity in Mount Chiri, With Special Attention to the Poaching of Bears

Cyprus (2012) Irrigation subsidies in Cyprus

Southern Asia
Afghanistan Taxation and revenue sharing

India In the budgetary context, subsidies are generally taken as unrecovered costs of public provision of goods that are not classified as public goods. These are private goods where user charges can be levied according to individual consumers or according to groups of consumers. Subsidies are often justified in the presence of positive externalities and for redistribution objectives. Financing of subsidies however induces its own cost and over subsidization can adversely affect allocation of resources and environment. In the context of huge resource dependent population and under several poverty alleviation programmes India has been providing subsidies in the agriculture, irrigation, energy and industry sectors, as a means of providing livelihood security to the underprivileged sections of the society. Major threats to biodiversity in India do not emanate from such subsidies. India has embarked on a regime to reduce/ remove some of the subsidies, and to make them better targeted and to promote efficiency in their administration. India has nevertheless taken significant measures to promote positive incentives that encourage activities beneficial to biodiversity. Studies have been carried out on mechanisms that incentivize States to conserve forests and biodiversity, by providing a 'green bonus' or determining State funding allocations based on growing stock of forests, ratio of dense forest cover to total forest cover, and total carbon stock.
1. Counting organic farming assistance
2. Subsidies, green procurement and purchase
3. Indo-British Rainfed Farming Project 4. Environmental Fiscal Reform for Sustainable Development and Poverty Reduction – India
5. Water Cess, Indira Priyadarshini Vrikshamitra (Friend of Trees) Awards, Rajiv Gandhi Wildlife Conservation Award
6. Discounts on entrance fees for exercising in Keoladeo National Park, Bharatpur
7. Equitable sharing of benefits in Sukhomajri
8. The Use of Subsidies for Soil and Water Conservation: A Case Study from Western India
9. Reform of subsidy for chemical fertilizer
10. Public Expenditures and Subsidies in Indian Surface Irrigation: Who Benefits?

Iran Green Prize, ISO 14001 and Environmental honouree medal, tax exemptions

Nepal Annual revenue generated from tourism in protected areas (2003-2012)
1. Entrance Fees
2. Annapurna Conservation Area
3. A Review of Current Practices of Revenue Generation from Natural Resources for the Local Bodies of Nepal

Pakistan Maintaining Biodiversity In Pakistan With Rural Community Development, Sustainable Resource Use in Bar Valley, Malakand/Dir Social Forestry Project (MSFP)

South-Eastern Asia
Cambodia Correcting perverse incentives for unsustainable logging and raising royalties on forest exploitation

Indonesia Removal of pesticide subsidies

Lao PDR Investment incentives for sustainable development: The case of Lao PDR

Philippines 1. Scuba Diving Fees
2. Grassland pricing reform
3. Watershed protection fee for the Mount Makiling Forest Reserve
4. Benefit sharing as key to conserving the Tubbataha Reefs
5. User's Fee, Integrated Protected Area Fund for Protected Areas, Export Fees
6. Environmental tax

Western Asia
Armenia Tax exemptions, environmental fees, special environment conservation account of the Central Bank of Armenia

Georgia Fees, Taxes

Israel green public procurement, green dimension of government budgets, taxation policy and the environment, environmentally harmful subsides to fossil fuel production and consumption, agriculture, and car ownership and use, levies, fees and fines

Jordan Tax exemption

Lebanon Award, tax incentives

Syria Tax, incentives

Turkey 1. Incentives
2. Seed capital: Externally financed development of premium bulb markets
3. environmentally-related taxes, environmentally harmful subsidies, user charges and pollution fees, environmentally-related financial assistance, the Bank of Provinces

Americas
Antigua and Barbuda Public Sector Budgetary Process and incentives

Belize Entrance fees

Brazil 1. Green VAT (ICMS Ecológico), Private Reserves of the Natural Heritage (RPPN), payment for environmental services, market for sustainable timber and non-timber forest products, rural development, economic instruments for a discovery corridor, implications of biodiverstiy loss, off-season fishery insurance, environmental licensing
2. ICMS Ecologico, wwf version; Fiscal transfers between state and municipal governments provide incentives for ecosystem services provision: the ICMS-E in Brazil; Fiscal Incentives for Biodiversity Conservation: The ICMS Ecológico in Brazil; Ecological VAT; The Ecological Value-Added Tax experience in Brazil; “ICMS Ecologico” Ecological Value-added Tax; Redistributing federal taxes for stewardship of protected areas through the ICMS ecológico
3. Biodiversity Conservation and Cattle Ranchers in the Brazilian Pantanal
4. Water charge for river basin access
5. Timber discounts for reforestation
6. Subsidy for traditional rubber production
7. Counting VAT transfer (Brazilian ICMS Ecológico)

Canada 1. Subsidy Reform and Sustainable Development: Economic, Environmental and Social Aspects - Subsidies and the 2003 Cod Fishery Closure in Canada
2. Ecological gifts, stumpage fees, water charges, reducing environmentally harmful subsidies in energy, agriculture and fishery sectors, environmentally related taxes on energy and transport, taxation of resource-based activities
3. Ecological fiscal reform (EFR)
4. Capital Gains Tax Exemptions, Conservation Agreements, Ecogifts, NRTEE Ecological Fiscal Reform Program
5. Using the Income Tax Act of Canada to Promote Biodiversity and Sensitive Lands Conservation

Chile taxation of road fuel, water subsidies, environment-related subsidies, entrance fees, subsidies to afforestation, trading in water rights, trading in air pollutant emission permits, individual transferable fishing quotas

Colombia compras públicas sostenibles
1. Timber discounts for reforestation
2. Colombia Water Tax
3. How Well has Colombia's Wastewater Discharge Fee Program Worked and Why?
4. Economic Incentives for Micro-Watershed Management
5. Tax exemptions

Cuba Forestry Tax, Havana Bay User Tax, Tariff allowances to the import environmental preferable technologies, Presentation

Dominican Republic Leveraging existing subsidies for environmental protection: Soil conservation

Ecuador Entrance fees

Mexico 1. Support policy to agriculture and fisheries, greening the tax system, water charges and pricing, waste charges, rewarding environment-friendly goods and activities, removing environmentally harmful subsidies (energy subsidies, agricultural support, fishery support, access fees
2. Reengineering of agricultural subsidies, Elimination of tax exemptions to agrochemicals, Decreased irrigation subsidy
3. Incentives to Peasant Creativity and Research for the Conservation and Efficient Management of Biodiversity in the Center Mountain Region of the State of Guerrero
4. Structural Adjustment, Market and Policy Failures: The Case of Maize

United States of America 1. Road Tolls, Hotel Room Taxes, Taxes on Hunting, Fishing and Other Recreational Equipment
2. Tools for raising revenues (taxes, fees and special charges), acquiring capital (bonds, loans, grants), enhancing credit and lowering costs, accessing state and local financing, financing and encouraging pollution prevention and recycling, financing community-based environmental protection, financing brownfields redevelopment, financing small businesses and the environmental goods and services industry
3. Renewable portfolio standards in the US: Bringing market forces to transitional subsidies
4. Subsidies in World Fisheries: A Reexamination (1998) - United States
5. Reforming Energy and Transport Subsidies: Environmental and Economic Implications - The Climate Change Implications of eliminating U.S. energy Subsidies
6. Reforming Energy and Transport Subsidies: Environmental and Economic Implications - Transport Subsidies: U.S. Case Study
7. Pesticide tax, water pricing and trading, sectoral subsidies, environmentally related taxes
8. US Experiences with Incentive Measures to Promote the Conservation of Wetlands
9. Using Economic and Regulatory Incentives to Restore Endangered Species: Lessons Learned from Three New programs
10. A Guide to Federal Tax Incentives for Brownfields Redevelopment
11. International Experiences with Economic Incentives for Protecting the Environment (2005)

Venezuela Timber discounts for reforestation

Eastern Europe
Belarus (1998, 2006) Taxes, compensations

Bulgaria (2001) Incentives

Czech Republic (2012) Feed-in tariffs for the generation of energy from waste incineration and landfill gas, reform of water pricing in the Czech Republic
(2011) Environmental Tax, (Summary)
(2004) Analysis of Public Subsidies, case studies
(2006) Subsidy Reform and Sustainable Development: Economic, Environmental and Social Aspects - Reform of Industrial Zone Subsidies in the Czech Republic
(2005) Sectoral subsidies, environmentally related taxes, green tax reform, pricing of municipal services, charges
(2008) National Subsidy Programmes, European Subsidy Programmes

Hungary (2012) Feed-in tariffs for the generation of energy from waste incineration and landfill gas in Hungary
(2011) Environmental Taxes in Hungary
(2008) Environmental load charge, entrance fees, environmentally harmful subsidies, subsidies for environmental investment, environmentally related taxes, green public procurement
(1998) Fiscal innovations

Poland (2014) use of environmental criteria in public procurement (green procurement)
(2012) Preferential treatment for the hard coal mining industry, subsidies for the construction of waste incineration plants in Poland
(2001, 2005, 2009) Fees, fines, taxes, credits
(2003) charges, fines, subsidies, tax relief, greening of sectoral taxation and price signals, cost recovery of environmental services

Republic of Moldova (2001, 2005) Economic instruments

Romania (2013) Environmental Accounts, Final Report; Standard tax tables
(2001, 2005, 2009) Taxes

Russian Federation (1998) Subsidies in World Fisheries: A Reexamination – Russia
(1997) Reforming Energy and Transport Subsidies: Environmental and Economic Implications - Greenhouse Gas Impacts of Russian Energy Subsidies

Slovakia (2005, 2009) Tax exemption, incentives
(2011) environmentally harmful subsides, environmentally related taxes, fees, fines, property tax reduction on land used for nature

Ukraine (2003, 2007) Tax exemption, incentives

Northern Europe
Denmark (2014) Decisions on investment in infrastructure and tax reforms; Subsidies for draining removed from agricultural grant schemes, subsidies stopped for draining and building roads in woodlands under the woodland improvement scheme, pesticide tax reallocated to stimulate the reduced use of those pesticides resulting in the highest load with respect to human health and the environment, specific subsidy schemes under the national Rural Development Programme set up for protection of threatened species living on open land and in woodland, advisory scheme with information on the national subsidy schemes under the Rural Development Program. The Green Growth Agreement (2009) with significant amounts earmarked in recent years for protection and care of Natura 2000 and Article 3 areas, for restoration of nature and to improve the aquatic environment, and ensure more water in the countryside. 5 year environment and organic schemes promoted by caring for grass and natural areas, including 1-year subsidy schemes for extensive farming; The Partnership for Green Public Procurement, Forum for Sustainable Procurement and several specific projects, including the "Responsible Purchaser" web portal, to promote consideration for the environment in public sector procurement
(2012) Subsidies for the modernisation of fishing vessels in Denmark
(2007) water pricing, environmentally harmful subsidies, environmentally related taxes, green tax packages, water tax, waste water tax, financial support to afforestation
(2005) Environmentally Harmful Subsidies: Linkages between subsidies, the environment and the economy
(2000) Environmental taxes and subsidies in the Danish NAMEA, by European Commission
1. Introduction of NACE Rev. 2 in the Danish Accounts for Environmental Taxes and Subsidies
2. Counting subsidies
3. Danish pesticides tax, Compensation, subsidies, pesticide tax
4. Environmental Taxes and Subsidies in the Danish NAMEA 1996
5. Implementing Environmental Fiscal Reform: Income Distribution and Sectoral Competitiveness Issues - The Danish Tax Reforms in the 1990’s

Estonia (2014) Occurrence of subsidies harmful to biodiversity is analysed in SEA-s prepared for sectorial development plans and, if needed in EIA reports of planned activities. Through Environmental Investment Centre (EIC), subsidies are paid out from the national Environmental Programme, which collects money from environmental charges (part of the environmental charges are directed for paying environmental loans). According to the State Statistical Office, 484.3 million euros of environmental charges were collected to the state. Since the implementation of the ecological tax reform in 2005, the share of the environmental taxes in gross domestic product has increased from 2.3% to 2.8% by 2012, exceeding the EU average share of environmental taxes in 2008. Environmental Charges Act was adopted in 2006. Environmental charges make 2.8 percent of GDP. Money from the environmental is directed back into the environment through the EIC. Environmental charges and the environmental subsidies that are directed back to protect the biodiversity are expected to increase significantly from 2016.
(2012) Feed-in tariff for electricity generated by cogeneration in Estonia
1. Use of Environmental Tax Statistics for Monitoring of Environmental Tax Reform in Estonia: Summary, Final report
2. Ecological tax reform

Finland (2014) survey of environmentally harmful subsidies; An extensive survey of environmentally harmful subsidies (http://valtioneuvosto.fi/ajankohtaista/tiedotteet/tiedote/fi.jsp?oid=386980)
(2012) Subsidies to improve forestry on peat lands in Finland
1. Environmental taxes by economic activities
2. Subsidies
3. national strategy on SCP, 2009 resolution on sustainable procurement, Forest Diversity Programme METSO
4. Environmental subsidies for agriculture, METSO Forest Biodiversity Programme for Southern Finland
5. Tax concessions, environment-related taxes, environmentally harmful subsidies, water and waste water charges, fishing licence fee, fees related to recreational hunting

Ireland 1. Environmental tax system, payments
2. Implementing Environmental Fiscal Reform: Income Distribution and Sectoral Competitiveness Issues - Income Distribution Concerns in relation to compensation in Ireland
3. water pricing, environmentally related taxes, tax concessions, subsidies

Latvia 1. Pilot Study on environmental taxes in Latvia in 2007, (Tables), (Summary)
2. Natural resources tax, tax exemption
Lithuania 1. Pilot Project on Environmental Taxes
2. Natural resources tax, pollution charges
Norway 1. Pilot studies for the development of Environmental Accounting: Norwegian Economic and Environmental Accounts (NOREEA) Project 2005 - Final report
2. Environmentally related taxes in Norway
3. Environmental Goods and Services Sector, NAMEA, Air and Environmental Related Taxes, (Activity Report)
4. Expand the NAMEA Environmental related tax accounts
5. Green taxes and fees, review of subsidies, pesticide tax, green public procurement
6. Subsidies in World Fisheries: A Reexamination (1998) – Norway
7. Reforming Energy and Transport Subsidies: Environmental and Economic Implications - The Market Reforms in the Norwegian Electricity Sector
8. Subsidy Reform and Sustainable Development: Economic, Environmental and Social Aspects - Subsidy Reform in the Norwegian Fisheries Sector
9. generational accounting and the fiscal rule, environmentally related taxes, environmentally harmful subsides, taxation of farm inputs, green public procurement, fishery subsidies, individual vessel quotas

Sweden 1. Subsidies
2. Improving the Environment through Reducing Subsidies (2000) - Effects of Government Subsidies on the Environment: the Case of Electricity and Newsprint Production from a Swedish Perspective
3. green tax shift, distributional effects of green tax shift, environmentally harmful subsidies, environmentally motivated subsidies
4. Environment taxes and environmentally harmful subsidies in Sweden (2000), by European Commission

United Kingdom (2012) Eligibility criteria for CAP Pillar 1 direct payments, company car taxation, aggregates levy and landfill tax on construction and demolition waste in the UK
(2002) water pricing, environmental taxation and distributive effects, green taxes, transferable permits, tax relief and exemptions
(2004) Industrial analysis of environmental taxes (2004), by United Kingdom Office for National Statistics
(2006) UK environmental taxes: classification and recent trends (2006), by Office for National Statistics
(2011) Government revenues from environmental taxes (2011), by United Kingdom Office for National Statistics
1. Industrial analysis of environmental taxes
2. Review of Environmental Taxes in the UK Environmental Accounts
3. Landfill Tax Credit Scheme (LTCS); Gift Aid scheme; Study on tax incentives for sustainable housing
4. The Case for Green Fiscal Reform: Final Report of the UK Green Fiscal CommissionGreen Tax Commissions in Europe
5. Tax incentives for sustainable housing
6. Reforming Energy and Transport Subsidies: Environmental and Economic Implications - Electricity-Related Supports in the United Kingdom

Southern Europe
Albania Tax exemptions, financial stimulation

Croatia (2014) Participation in the European Commission study on Environmental Fiscal Reform
(2014) Permits, concessions, entrance fees, vignettes for marine vessels, 'Green taxes’ in the field of forestry
(2007) State subsidies

Greece (2012) Reduced VAT rate for drinking water in Greece
(2009) environment-related taxes, access fees to national parks, environmental subsidies
(1999) Incentives for the Conservation of the Nesting Grounds of the Sea Turtle Caretta Caretta in Laganas Bay, Zakynthos, Greece
Tax incentives, cash subsidies, petrol tax

Italy (2012) Irrigation subsidies, pay-as-you-throw schemes in Italy
(2013) Greening the tax system, tax concessions, Environmental components of the 2011-12 fiscal consolidation and growth packages, green public procurement
1. Environmental tax system
2. Reforming Energy and Transport Subsidies: Environmental and Economic Implications - Environmental Implications of Supports to the electricity Sector in Italy

Malta (2012) Indirect subsidy to rock extraction in Malta
Environmental Taxes

Portugal (2012) Feed-in tariffs for the generation of energy from waste incineration and landfill gas in Portugal
(2011) “green” measures included in Portugal’s fiscal stimulus package, environmentally related taxes, subsidies to agriculture and fisheries, tourist eco-charge, taxes on greenfield development
1. Pilot Study on Environmental Taxes
2. Corporate Income Tax incentives, certification incentives, Permanent Forest Fund, Ecological Fiscal Transfers, environmentally-related taxation and tax expenditures

Slovenia (2014) A new budget line "Implementation of biodiversity goals" has been established and adopted in December 2013 in the state budget for 2014 – 2015
(2012) Incomplete producer responsibility for WEEE in Slovenia
(2012) taxation policies and the environment, environment-related subsidies, green public procurement
1. Improvements and updgrading of the existing Environmental Accounts (Environmentally related taxes)
2. Mandatory forest management plans, public advisory institution and financial incentives

Spain (2014) 2008 Acuerdo por el que se aprueba el Plan de Contratación Pública Verde de la Administración General del Estado y sus Organismos Públicos, y las Entidades Gestoras de la Seguridad Social (http://www.magrama.gob.es/gl/ministerio/planes-estrategias/plan-de-contratacion-publica-verde/default.aspx)
La Ley 49/200237, de 23 de diciembre, de régimen fiscal de las entidades sin fines lucrativos y de los incentivos fiscales al mecenazgo en España. La Ley 42/2007, de 13 de diciembre: un examen metodológico sobre cómo abordar los incentivos contrarios a la conservación de la biodiversidad (las deducciones por cesión de usufructo a entidades sin ánimo de lucro que no estén sujetas a contraprestación, la exención del Impuesto de Bienes Inmuebles o el de Transmisiones Patrimoniales para adquisición de tierras para la conservación, la deducción del 25% sobre el Impuesto de la Renta de las Personas Físicas (IRPF) o del 35% sobre el Impuesto de Sociedades por donaciones para entidades que se dediquen a la conservación, o la exención del Impuesto de Transmisiones Patrimoniales para permutar terrenos entre una entidad conservacionista y un particular. Además, los gastos derivados de convenios de colaboración empresarial en actividades de conservación tendrán la consideración de gasto deducible a efectos de la determinación de la base imponible de los Impuestos sobre Sociedades y del rendimiento neto de las actividades económicas en el Impuesto sobre la Renta de las Personas Físicas, suprimiendo los límites que fijaba la ley anterior.)
(2012) Subsidies for vessel scrapping, irrigation subsidies in Spain
(2004) water pricing and charges, sectoral subsidies, environmentally related taxes, ecological fiscal reform
Measures and mechanisms to account for the values of biodiversity and ecosystem services in decision -making, including the review and updating of NBSAPs; valuation of natural assets of Spain and Millennium Ecosystem Assessment Spain; perverse incentives for sectors that can potentially affect biodiversity; positive incentives for the conservation and sustainable use of biological diversity; collaboration with companies on ways and means to contribute to the national implementation of the Convention; sustainable consumption and production including Green Public Procurement Plan
2. Environmental tax system, general aid, application of European system
3. Plan de Contratación Pública Verde de la Administración General del Estado y sus Organismos Públicos y las Entidades Gestoras de la Seguridad Social

Western Europe
Austria (2012) Road charging, tax deductions for commuters in Austria
(2000) Improving the Environment through Reducing Subsidies (2000) - Environmental and Economic Effects of Support to the Austrian Pulp and Paper Industry
(2013) greening the tax system, removing environmentally perverse incentives, better targeting environmentally motivated incentives, environment-related components of the fiscal stimulus packages
Subsidies
Subsidy Reform and Sustainable Development: Economic, Environmental and Social Aspects - Reforming Counterproductive Subsidies in Austrian Transport

Belgium (2014) Agri-environmental subsidies, Natura 2000 remunerations for the farmers and for the forestry sector, dispensation of property tax and of succession and donation rights within Natura 2000, subsidies for biological agriculture, supplementary subsidies for agri-environmental measures in Natura 2000 sites and in the main ecological structure areas (SEP), subsidies for the planting of hedges, tree rows and orchards, subsidies attributed through the 'Plan Communal de Développement de la Nature', for delayed mowing, hedges, for the program 'combles et clochers', within river contracts, for the Maya Plan, for natural parks, for the action 'Semaine de l'Arbre', etc, subsidies for the regeneration of broadleaved and conifer species, subsidies for the management of open spaces, subsidies for the acquisition of land that will be designated as nature reserve, subsidies to nature associations for management or for communication and awareness purposes.
(2014) Adoption of biodiversity criteria in public procurement policies - use of certified wood in public works (http://www.guidedesachatsdurables.be)
(2012) Company car taxation, reform of car registration tax system, reduced environmental charge rate for waste incineration in Flanders, Belgium
(2007) environmentally-related taxes, greening fiscal measures, agricultural subsidies, green procurement, environmental charges, water charges, pesticide ecotax
(2005) Environmental Tax Accounts for Belgium 1997-2002, by European Commission
1. Environmental Tax Accounts for Belgium (1997-2002)
2. Environmental Tax Accounts for Belgium (1990-2007)
3. The Belgian Environmental Tax Accounts, Environmental Protection Expenditure Accounts, Air Emission Accounts (Summary)
4. Grants and subsidies, public procurement

European Union (2012) The Commission's "Background Study towards biodiversity proofing of the EU budget" examines the opportunities for "Biodiversity-proofing" the EU budget, which is defined as a structured process of ensuring the effective application of tools to avoid or at least minimize harmful impacts of EU spending and to maximise the biodiversity benefits. It applies to all spending streams under the EU budget, across the whole budgetary cycle and at all levels of governance. The study gives recommendations on the first steps and on the entry points of "biodiversity proofing" the EU budget with a focus on the CAP Pillar 1 and 2, ERDF, Cohesion Fund, CEF, TEN-E, TEN-T, EMFF, Horizon 2020 and the LIFE Programme. The Commission recently launched a follow-up contract to create a practical common framework for biodiversity-proofing the EU budget, which would include general and fund-specific guidelines for national and regional authorities and for Commission services.
(2012) Study supporting the phasing out of environmentally harmful subsidies
(2013) Environmental taxes: statistical guide 2013 edition
(2004) Public procurement, tax incentives, Public procurement (2004), Environmental taxes and charges, deposit-refund schemes, Environmental tax reform, Subsidies, subsidy reform, support schemes and green purchasing
(2000) Environmental Taxes: Recent Developments in Tools for Integration (2000)
(1998) Subsidies in World Fisheries: A Reexamination (1998) - European Union

France (2014) Innovative initiatives for biodiversity financing - Converting harmful subsidies. Full report
(2014) Comité pour la fiscalité écologique, Réformes fiscales environnementales engagées depuis 2011
(2012) Subsidies contributing to unsustainable land use and soil sealing, exemption from land tax for reforestation and afforestation on wetlands, implicit subsidy to the use of nitrogen-rich fertilisers in agriculture in France
(2005) department tax for sensitive natural areas, accommodation taxes, parking fees, hunting licence fees, general tax on polluting activities, farm subsidies, environment-related taxes
(2000) Improving the Environment through Reducing Subsidies (2000) - Environmental Impacts of Agricultural Support: Cereal Irrigation in France
1. La fiscalité environnementale en France : un état des lieux
2. Inventaire des taxes environnementales en France
3. Les aides publiques dommageables à la biodiversité
4. Study on incentives
5. taxe d’aménagement, Fonds de dotation pour la gestion d’espaces naturels
6. Reforming Energy and Transport Subsidies: Environmental and Economic Implications - Evaluation of the External Costs of Road Transport in France and the Consequences of Cost internalization
7. Implementing Environmental Fiscal Reform: Income Distribution and Sectoral Competitiveness Issues - Eco-Taxes and Competitiveness Issues: Lessons Learned from the Carbon-Energy Tax Project in France in 1998-2000

Germany (2014) According to estimates by the German Association of Towns and Municipalities, the public sector awards contracts totalling €256 billion every year. By appropriate steering of its procurement activities, it could support the conservation of biological diversity by using products resulting from sustainable use. It is also the biggest land owner in Germany. For example, 57 per cent of Germany's forests are owned by the public sector (federal: 4%, Lander: 29%, municipalities: 20%, trustee forest: 4%). In general, the public sector has an obligation to live up to its model function and responsibility for sustainably managing and using this land in a way that maintains and fosters biodiversity. The state's activities on the market should also serve to encourage business enterprises and provide an exemplary model for them to follow. Sustainable procurement of timber products has already been implemented by federal authorities on the basis of the Joint Decree of 17 January 2007 by the ministries BMWi, BMEL, BMUB and BMVI, most recently updated in January 2011. This requires federal procurement bodies to demand evidence of forestry management that is not only legal, but also sustainable. The content of the provisions largely refers to the certification standards of PEFC and FSC. The provision served as a model for procurement rules drawn up by numerous Länder, cities and municipalities, and individual companies with a special commitment to the environment. In March 2011 the Federal Ministry of Transport, Building and Urban Development introduced the revised guidance document on “Sustainable Building” as a binding requirement in the Federal Facilities Management Authority. The guide takes account of current building policy requirements and also the reduction target of 30 hectares per day for appropriation of land for settlement and transport purposes. For the first time it requires evidence that plausibly describes the environmental impacts of the building and its overall contribution to sustainable development on the basis of prescribed criteria. On the basis of an assessment approach developed jointly with the Deutsche Gesellschaft für Nachhaltiges Bauen e. V. (DGNB), the Federal Ministry of Transport, Building and Urban Development has improved and refined the criteria and assessment yardsticks for federal construction projects and merged them in the assessment system “Sustainable Building” (Bewertungssystem “Nachhaltiges Bauen” – BNB). Initially devised for the construction of new office and administration buildings, the rules were subsequently applied to work on existing buildings and to planned new school and educational buildings, research establishments and external facilities. The BNB use profile for external facilities explicitly asks about the criterion “biodiversity” and assesses it through the sub-criteria “biodiversity conservation”, “biodiversity development” and “invasive plant species”. In a variety of conversion projects, the Institute for Federal Real Estate (Bundesanstalt für Immobilienaufgaben – BImA) has made substantial contributions to reducing land take, not only through recompaction and development of conversion land in urban agglomerations, but also through measures to reduce surface sealing and dismantle former military infrastructures by way of compensatory measures in non-built-up areas. In future greater attention is to be paid to biodiversity issues in connection with procurement and facility management by means of corporate environmental management systems, especially EMAS (European Eco-Management and Audit Scheme), which has explicitly included the biodiversity indicator since its revision in 2009. A guide to using the new EMAS indicators is currently in preparation as part of a BMUB research project.
(2012) Limited liability for nuclear energy producers, car fleet renewal schemes, reduction of energy tax exemptions for companies, water abstraction charges in North Rhine-Westphalia
(2011) ecological tax reform, greening tax system, environmentally-related taxes, removing environmentally perverse subsidies, environment-related components of the stimulus and consolidation packages, water pricing, environmental goods and services
(2000) Incentive Measures Appropriate to Enhance the Conservation and Sustainable Use of Agrobiodiversity
1. Counting positive subsidies
2. Tax deductions, subsidies
3. Incentive Measures for the Conservation of Agrobiodiversity

Luxembourg (2012) Reduced VAT rate for food in Luxembourg
(2009) water pricing and charges, environmentally related taxes

Netherlands (2014) Large environmentally harmful subsidies are especially found in the energy, transport (red diesel) and agricultural sectors (low VAT on meat and dairy), in 2010, in the Netherlands, representing between 5 and 10 billion euros. The Dutch Government could abolish certain environmentally harmful subsidies at a national level, but for competition reasons this would require agreements at a European or global scale. Green taxes contributed almost 14% to the total tax revenue of the Netherlands. The revenues from green taxes have more than doubled since the late eighties.
(2014) Environmental fees, Environmental taxation, VAMIL/MIA (fiscal provision/facility to stimulate private sector investments in environmental friendly assets): http://www.rvo.nl/sites/default/files/BrochureMilieulijst%202013.pdf; Government procurement (central, provincial, municipal, education etc.)
(2012) Absence of road pricing for freight and passenger transport, company car taxation, elimination of reduced excise tax rate for diesel used in agricultural machinery, income tax deductions for commuters in the Netherlands (2000) Improving the Environment through Reducing Subsidies (2000) - Environmental Effects of Changes in Taxation and Support to Agriculture
(2003) water charges, environmental taxes, environmentally harmful effects of subsidies, green taxes, environmental charges, hunting licence fees, environmentally related fiscal measures
1. Counting positive subsidies
2. Ecotaxes, tax exemptions, high VAT-taxes, accelerated depreciation, Green funds scheme
3. Environmental taxes at industry level; quality improvement

Norway Norwegian Economic and Environmental Accounts (NOREEA) Project 2003

Sweden (2012) Support for biofuels, reduction of exemptions from energy and CO2 taxes for certain fossil fuels in Sweden
1. Environmental taxes and environmentally harmful subsidies
2. Potentially environmentally harmful subsidies in Sweden
3. Subsidies in Sweden

Switzerland study on existing financial incentives (i.e. subsidies) having negative impacts on biodiversity (Ecoplan 2013): Finanzielle Anreize bezüglich Biodiversität optimieren. Studie im Auftrag des BAFU. Download: http://www.bafu.admin.ch/aktionsplan-biodiversitaet/12608/12621/12637/index.html?lang=de
1. Environment related taxes
2. environmentally related taxes, green tax reform, sectoral subsidies, green public procurement, eco-labels

Regional Environmental accounts: State of play of recent work Report to Eurostat, Covering the period from 21 December 2006 to 21 December 2007

Oceania
Australia The Biodiversity Fund ran from 2011-2014 to provide investment to improve the resilience of Australia’s landscape to climate change, enhance the environmental outcomes of Carbon Farming Initiative projects and help landholders to protect carbon and biodiversity values on their land. Round One (2011-2012) was AU$271 million worth of grants. Investment of $AU2 billion under the Caring for our Country programme from 2008–2013 supported biodiversity and sustainable farm practices.
Conservation covenant concessions (tax concessions) are available to land owners who enter into conservation covenants to protect areas of high conservation value in Australia. Covenant Scheme Providers can apply to have their covenant scheme approved for the purposes of the Income Tax Act 1997. Landowners entering covenants through approved programs may be eligible for tax concessions, creating positive incentives for conservation.
1. Tax incentives, rate rebates and concessions, voluntary instruments
2. Reforming Energy and Transport Subsidies: Environmental and Economic Implications - Modelling “Support” to the Electricity Sector in Australia
3. Subsidy Reform and Sustainable Development: Economic, Environmental and Social Aspects - Water Reform and the Agricultural Sector in Australia
4. water trading, pollution charges, water prices, user-pays pricing and water trading rights, grant programmes, taxation measures, revolving funds, environmentally related taxes, grant programmes, taxation measures, revolving funds, environmentally related taxes, Greening of Government Program Framework Action Plan, sustainable procurement
5. Commonwealth Scientific and Industrial Research Organisation
6. Taxation Policy, Ownership and Use Rights, Accreditation Schemes, Biodiversity Prospecting Contracts and the Commercialisation of Wildlife

Marshall Islands Fines and penalties

New Zealand There are no direct subsidies to the fishing industry or to commercial forest management. Subsidy reform initially had a positive impact on biodiversity by reducing the use of fertilisers and pesticides, and decreasing pollution levels in rivers and reducing the farming of land with lower agricultural values. However, with the intensification of agriculture, especially dairy farming, in recent years, pollution and biodiversity concerns have renewed.
1. Cost recovery charges, tax exemptions
2. Subsidy Reform and Sustainable Development: Economic, Environmental and Social Aspects - Subsidy Reform in the New Zealand Agricultural Sector
3. Conservation of the Pae O Te Rangi Area
4. Removal of agricultural and fisheries subsidies
5. greening of government procurement, phasing-out of agricultural support

Niue Fuel subsidy for local Niueans with aluminium boats for fishing, Fish Aggregating Devices (FADs)

Palau Scuba diving fees

Solomon Islands Licenses and permits, tax exemptions

General
IMF 1. The Macroeconomic Effects of Environmental Taxes: a Closer Look at the Feasibility of “Win-Win” Outcomes (1998)
2. Optimal Fiscal Policy and the Environment (1998)
3. Environmental Tax Reform: Principles from Theory and Practice to Date (2012)

OECD 1. Report on Implementation of the 2004 Council Recommendation on the Use of Economic Instruments in Promoting the Conservation and Sustainable Use of Biodiversity
2. DAC Guidelines and Reference Series: Environmental Fiscal Reform for Poverty Reduction (2005)
3. Environmentally Related Taxes in OECD Countries: Issues and Strategies (2001)
4. Some OECD Usage-of-Terms for Biodiversity (2005)
5. The "Sale" of Biodiversity to Nature Tourists (2003)
6. Financial Support to Fisheries: Implications For Sustainable Development (2006)
7. Biofuel Support Policies: An Economic Assessment (2008)
8. OECD Work on Defining and Measuring Subsidies in Fisheries
9. Environmentally Harmful Subsidies
10. Environmentally Harmful Subsidies: Policy Issues And Challenges
11. Environmentally Harmful Subsidies: Challenges For Reform (2005)
12. OECD Experience in Reforming Environmentally Harmful Subsidies (2009)
13. Subsidy Reform and Sustainable Development: Political Economy Aspects
14. Improving the Environment through Reducing Subsidies (1998)
15. OECD Workshop on Environmentally Harmful Subsidies (2002)

UNDP 1. Energy Subsidies in the Arab World (2012)
2. Energy Subsidies in Developing Countries: Can we make it for those whom it is intended? (2007)

UNEP 1. Tax and compensation mechanisms to reward stewardship, Green Public Procurement (GPP)
2. Instruments in Biodiversity-related Multilateral Environmental Agreements (2004)
3. Perverse and positive incentives: working insights from TEEB
4. Subsidies: Lessons Learned in Assessing their Impact and Designing Policy Reforms
5. Reforming Energy Subsidies: Opportunities to Contribute to the Climate Change Agenda (2008)
6. Analyzing the Resource Impact of Fisheries Subsidies: a Matrix Approach (2004)
7. Fisheries Subsidies - Impacts and Options for Reform (2009)
8. Towards the reform of environmentally harmful subsidies
9. Sustainable Fisheries, International Payments for Ecosystem Services (IPES), Integrated Trade Assessment and Organic Agriculture
10. Reforming Subsidies (2009)
11. Discussing the reform of irrigation subsidies (2009)

UNFAO Guide for identifying, assessing and reporting on subsidies in the fisheries sector (2004)

World Bank 1. Environmental fiscal reform: What Should Be Done and How to Achieve It (2005)
2. The Distributional Incidence of Residential Water and Electricity Subsidies (2006)

WTO World Trade Report 2006: Exploring the Links between Subsidies, Trade and the WTO

IUCN 1. Perspectives on incentive measures
2. Perverse Subsidies
3. Subsidy Reform: Doing More to Help the Environment by Spending Less on Activities that Harm it (1998)

WWF 1. Raising Revenues for Protected Areas: A Menu of Options (2001)
2. Correcting markets to tackle global challenges: what principles should guide international subsidy rules? (2006)
3. Fuelling the Threat for Sustainable Fisheries in Europe

IISD 1. A new template for notifying subsidies to the WTO (2007)
2. Biofuels – At What Cost? Impacts of subsidies for ethanol and biodiesel
3. Subsidizing Biofuels Backfires (2007)

ODI Environmental funding: How to increase the effectiveness of public expenditure in developing countries (2008)

Green Peace Deadly Subsidies

Earth Council Subsidizing Unsustainable Development: Undermining the Earth with public funds

ICEF Water Tariffs and Subsidies: Policy Alternatives For Decisionmakers

Status and trend

Global Monitoring Report 2012: Environmental fiscal reform refers to a wide range of structural adjustments to a country’s fiscal system, particularly taxation models and fiscal incentives, which can reflect true values and importance of biodiversity and ecosystem services in national economies. Over 70 countries indicated that certain fiscal measures have been undertaken or planned. Sri Lank introduced environmental tax system into the 2008 budget proposals. Georgia tried to bring the budget law and tax law in line with environmental legislation. In the Netherlands, revenues from green taxes over the past 23 years quadrupled from 4.8 billion euros in 1987 to nearly 20 billion euros in 2010. In Philippines, the Gilutongan Island Marine Sanctuary (GIMS) in the Municipality of Cordova in Cebu generated about PhP 3.0 million in user fee income in 2008 compared to about PhP 550,000 in 2001. Tax exemptions for biodiversity-related objects and activities are observed in a large number of countries including Kenya and Myanmar. Norway undertook to reduce the environmental pressure caused by the consumption of goods and services by giving greater weight to environmental considerations in public procurement processes. In Brazil and Portugal, biodiversity has introduced into their indexes for calculating intergovernmental transfer to subnational governments.
37% of countries have some experience of mobilizing resources from reforming fiscal systems. There is still considerable fiscal space available for introducing fiscal measures in many countries and deepening existing environmental fiscal reforms that have proved successful.

  • United Nations
  • United Nations Environment Programme