Green taxation in non-OECD countries - A review of experience and lessons learned

Green fiscal reforms and environmental taxes are key tools for contributing to more sustainable tax systems while reducing government dependence on subsidies and debt financing. For non-OECD developing countries, environmental taxes hold great potential to deliver multiple benefits by addressing the economic drivers behind the environmental challenges they face, enhancing the efficient use of resources, and mobilizing revenue. However, publicly available information on this topic is relatively sparse. To reap the beneficial potential of those instruments globally we need to better understand their impacts and the conditions for their success. Therefore, our report identifies data on green tax impacts, presents practical examples from different regions, draws lessons from existing environmental tax instruments, and assesses best and less best practices.