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Fiscal incentives for biodiversity conservation: the ICMS Ecológico in Brazil

Maryanne Grieg-​Gran

Discussion paper, 47 pages

This paper evaluates an innovative tax revenue-sharing scheme in Brazil, designed to promote the conservation and management of protected areas. Known as the "ICMS Ecológico", the scheme was introduced by the state of Parana in Brazil and subsequently by a several other states. The aim of the scheme is to compensate municipal governments for the loss of potential tax revenue from the designation of protected areas (mainly by the state and federal government), and also to encourage better management of existing protected areas. This analysis has contributed to a better understanding of the effectiveness of the existing scheme, and recommendations for improvement.

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