The GIZ sector project Rioplus is involved in various EFR related processes. Responding to a demand of broad capacity development approaches by policy makers that attended the Global Conference on Environmental Taxation (GCET) in Munich
2007, the GIZ together with the non-governmental organisation Green Budget Germany (GBG/FÖS) has designed an interactive training seminar that focuses on the different conceptual and thematic dimensions of EFR. The training is based on the OECD Development Assistance Committee (DAC) Guidelines on ?EFR for Poverty Reduction.

Environmental fiscal reform (EFR) refers to a range of taxation and pricing measures that can free up economic resources and/or generate revenues while helping to reach environmental goals. The underlying rationale of EFR is the correction of false price signals within the
economy. There are different relevant EFR instruments in developing and transition economies:
-Taxation of ressource exploitation
-Subsidies for and taxes on products
- Taxation of environmentally harmful emissions
- User fees and charges for disposals
The implementation of EFR can have four major benefits
which are interlinked and mutually reinforcing:
Environmental: EFR can directly address environmental problems that threaten the livelihoods and health of the poor, can improve the
resource efficiency of all stakeholder activities, including leading to sustainable use of natural resources.
Economic: EFR can reduce the abatement cost of negative environmental impacts and also generate revenues that can help to finance efficient and costeffective (environmental) services.
Social: EFR can help reduce negative environmental impacts, especially on poor and other vulnerable groups, and finance access of the poor to water, sanitation and electricity. In European countries revenues from EFR are also used to reduce ancillary
wage costs, thus reducing overall labor costs and boosting employment.
Structural: EFR can be designed in such a way that it contributes to good governance. If EFR instruments are designed to be applied cost-efficiently, involve relevant stakeholders during the design process, and are effectively enforced, this can result in enhanced transparency and accountability.

Objectives of the EFR training seminar:
- Understanding of EFR basic concepts and definitions
- In-depth knowledge of EFR approaches in various sectors and countries
- Detailed knowledge of the potential benefits and limits of EFR
- Increased capacity to discuss and design appropriate EFR strategies

Modules
Introduction: Participants reflect upon and communicate the current situation in their respective countries with respect to EFR. A first introduction to definitions, concepts and instru-ments of EFR is given.
Industrial pollution: The EFR policy cycle is introduced and practically applied on environmental issues. Focusing on industrial pollution participants discuss the use of different instruments including taxes, charges, standards and environmentally friendly subsidies. By that participants learn to identify and avoid possible obstacles to the implementation of EFR.
Transport: Participants analyze the economy and existing EFR instruments in their respective home countries. A policy reform proposal in the transport sector is developed.
Environmental Harmful Subsidies: An overview on relevant information on fossil fuels and energy is given. Participants learn how to sketch out policy proposals in these sectors in order to dismantle Environmental Harmful Subsidies (EHS) and how to deal with likely stakeholder opposition.
Waste Management: Options for using economic and financial instruments in solid waste management are presented. Participants develop and evaluate concepts for various instruments.
Personal Action Plan: Participants apply their acquired EFR knowledge to their own country and prepare a personal action plan.
Usually the trainings lasts between 2 and 4 days, a short introduction of 2-3 hours is possible and will be provided at the SD Learning Event.

The seminar employs innovative methods and uses all available opportunities for interactive group work. Based on the casework methodology of the Harvard Business School, it takes a practical approach to EFR. This method incorporates discussions about nationally appropriate EFR approaches (based on insights put forward by the participants). Furthermore, conclusions are developed through joint debate rather than on the basis of ?ready-made? teaching messages. Case studies cover various aspects of EFR. Using a range of materials, participants design and ?test? EFR elements in a number of different contexts.

- Understanding of EFR basic concepts and definitions
- In-depth knowledge of EFR approaches in various sectors and countries
- Detailed knowledge of the potential benefits and limits of EFR
- Increased capacity to discuss and design appropriate EFR strategies
by the following target groups:

- relevant ministries (i.e. environment, economy/ industry, finance) and administration officials (national and local authorities) as well as NGO
representatives of developing, emerging and transition economies. Workshop for staff of development programs andprojects: Familiarization with the subject of EFR and development of ideas for future activities.