InfoPoint conference: Environmental taxation in partner countries: promoting best practices

Future-proof tax systems need to address current and emerging challenges (such as Covid-19 crisis, wars, climate change, environmental degradation, globalisation, digitalisation and ageing population) through systemic reforms. Shifting taxation from labour to unsustainable resource use and pollution has the potential to address these aspects, in particular if coordinated at EU and international level.

Regulatory instruments such as green taxes and other green fiscal policies (GFP) are key tools to contribute to more sustainable tax systems and more equitable and stable societies, while decreasing state dependence on aid and debt financing. As part of a broader policy mix, green taxation initiatives at both EU and international level can help reach environmental policy goals by encouraging a switch to cleaner energy, more sustainable industry and greener habits. They allow businesses and individual consumers to decide how to respond to price signals and create a dynamic incentive in favour of change. Green taxes, charges and fees are associated with low administrative costs and can often be linked to existing revenue-raising mechanisms. While for some environmental taxes the revenue generation aspect can be the primary focus (e.g. transport fuels), for other it is the behavioural change in favour of greener practices. The internalisation of external costs and the polluter pays principle are important considerations in designing the taxes.

Through the European Green Deal, the European Commission is committed to achieving a just transition towards sustainable, resource-efficient and climate neutral economies and encourages partner countries to follow a similar sustainable recovery trajectory. Furthermore, the European Commission Communication “Global Gateway” presents strengthening domestic resource mobilisation as one of the main pillars of its delivery model aiming to create an investment-friendly environment for sustainable growth. Collect more – spend better (CMSB) has been the well-recognised approach of the Commission to support partner countries in their efforts to increase fair and effective revenue collection, improve public expenditure efficiency and advance debt management.

With the report Green taxation in non-OECD countries: a review of experience and lessons learned (commissioned by DG ENV), the European Commission hopes to further encourage avenues for increased green taxation in partner countries. The report presents practical examples from various regions involving different forms of taxation (e.g. tax, fee, levy, cess, and tariff) across multiple sectors (e.g. waste, forest, land, water, transport, energy, and housing). It aims to highlight best practices and share recommendations on green taxation.

Speakers

• Antti Karhunen, Director, DG INTPA E, Sustainable Finance, Investment and Jobs; Economy that works for the People
• Astrid Ladefoged, Head of Unit, DG ENV F1, Planetary Common Goods, Universal Values And Environmental security
• Jacqueline Cottrell, Director, ECOTTRELL  
• Christine Neumann, Advisor Tax Policy / Tax Administration, (GIZ), Zambia Revenue Authority (Tax administration) and at the Ministry of Finance and National Planning
• Andrea Alfieri, Head of Sector, INTPA F1, Climate Change and Sustainable Energy; Nuclear Safety
• Benedikt Madl, Head of Sector, DG INTPA E1, Macro-economic Analysis, Fiscal Policies and Budget Support

Language of conference: English

Language of Q&A session: English

Registration

Online participation (Webex)

On site (InfoPoint)