This report was published by the Economic Commission for Latin America and the Caribbean (ECLAC).
This report analyses tax expenditures aimed at promoting environmentally sustainable practices. Drawing on the Global Tax Expenditures Database (GTED) and a number of specific international experiences, it explores how these instruments are currently being used and evaluated. The report presents a methodology for identifying and classifying environmental tax expenditures implemented across the world. It also provides an in-depth analysis of four country cases (Germany, Indonesia, Ireland and South Africa), with an emphasis on how these tax expenditures are managed. The document also addresses the main governance issues in environmental tax expenditures, in view of the costs and benefits attached to these public policy instruments; and it presents policy recommendations to enhance their effectiveness and legitimacy.
Table of contents
Introduction
I. Environmental tax expenditures: data, methodologies and overview
II. International experiences in evaluating environmental tax expenditures
III. Governance issues and policy recommendations
IV. Conclusions.
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Redonda, A., Berg, S. and von Haldenwang, C. (2025). Tax expenditures for environmental sustainability: international experiences in their identification and evaluation to enhance their governance. Project Documents (LC/TS.2025/74). Economic Commission for Latin America and the Caribbean.