Greening taxes and subsidies around the world  [PDF version]  

Over recent years, IEEP has developed globally-recognised expertise on environmental tax reform (ETR). Building on our past work, we are currently leading major studies on capacity building for ETR in the EU, and greening taxes and subsidies in the Pacific islands. 

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Many environmental, climate and health problems are caused in part by the failure to adequately price pollution and resource use. Whilst these problems concern us all, optimum use is not yet being made of the market-based instruments that could address them. 

IEEP is leading two projects investigating how environmental tax reform (ETR) and the review of environmentally harmful subsidies (EHS) can be further encouraged.

Civil society could play an important role in the implementation of instruments e.g. by helping with the political acceptability of tax increases or new instruments. However, many such organisations lack sufficient knowledge, financial or political influence to fully contribute. IEEP is leading a major project for the European Commission investigating how to build the capacity of civil society organisations to play a greater role in this arena. 

The project is first collating examples of successful instruments in areas ranging from water to air pollution, waste to materials, and biodiversity and land management to marine litter. The study team will identify successful examples of civil society engagement, or opportunities for further engagement. Five workshops will be held around the EU from autumn 2016 to spring 2017 to share findings and gather further insights (see IEEP Conferences and Events).

On a global level, small island countries and territories feel the impacts of climate change particularly sharply, and also face challenges of resource use and waste disposal. Greener taxes and subsidies can help islands to tackle these, whilst also contributing to other targets such as Aichi target 3 (to reform by 2020 incentives harmful to biodiversity). 

IEEP, with three Australian partners (the Commonwealth Scientific and Industrial Research Organisation, the Australian National University and the Global Change Institute of the University of Queensland), has begun a study assessing current environment-related taxes, EHS and reform efforts in Fiji, Vanuatu, French Polynesia and New Caledonia. The study will propose a roadmap for the further greening of such instruments in the Pacific region, whilst ensuring economically important sectors such as tourism and fisheries are not harmed. 

For more information on either project, please contact Emma Watkins.