Options for Promoting Environmental Fiscal Reform in Development Cooperation

This project analysed the possibility for environmental fiscal reform (EFR) in development policy. Data were compiled and an assessment carried out for the selected five ACP countries: three African countries (Burkina Faso, South Africa and Uganda), one Caribbean country (Barbados) and one Pacific country (Vanuatu).

The findings of this project are in line with the overall EC policy of assisting ‘developing countries in building efficient, fair and sustainable tax systems and reveals that environmental fiscal reform can be one of the building blocks of these tax systems. The country case studies reveal a large window of opportunity for developing and implementing proposals for EFR measures. This finding is applicable not only for the five selected countries, but for developing (and developed) countries in general. Countries can either reform already existing EFR measures with the aim to improve their performance making them for more effective or can be implementing new EFR proposals.