Environmental Taxation and Tax Justice in Developing Countries

The Policy Center for the New South and the Mohammed VI Polytechnic University are organizing a panel on “Environmental Taxation and Tax Justice in Developing Countries” in the framework of the 2022 Global Development Conference on “ Tax Policy for Sustainable Development” organized by Global Development Network and held in Clermont Ferrand from November 2^nd to November 4^th.

There is a growing global recognition that current tax systems need to be revised and modernized to meet today's economic, social, and environmental challenges. These challenges include technological transition, demographic change, growing inequality, and the triple environmental crisis: climate change, biodiversity loss, and over-consumption of natural resources. Developing countries are among the most affected by the environmental crisis: deforestation, land degradation, air, soil, and water pollution, as well as mismanagement of natural resources are having negative environmental, economic and health consequences.

This session aims to examine the extent to which environmental taxation can contribute to more progressive and sustainable tax systems and more equitable societies in developing countries. It also aims to challenge policy makers on the need to align tax expenditure programs with green growth objectives, to reduce those that are harmful to the environment and to increase the impact of those designed to benefit the environment. The challenge for developing economies is to strike a balance between supporting the green transition, mobilizing the necessary financial resources, and ensuring fiscal equity in the most challenging socio-economic environment.