The Czech - German initiative on Environmental Tax Reform project aims at establishing and maintaining a dialogue amongst various actors from broad sphere of policy making, environmental NGOs, media, research, consumers, industry a government in the Czech Republic and Federal Republic of Germany. The purpose of the project is to enable transfer of the experiences with Environmental Tax Reform that has been carried in Germany since 1999 and has just passed into its fifth phase.

The fundamental principle of Environmental Tax Reform resides with implementation of excise duties for solid fuels and electricity and increase of excise duties on mineral fuels. Experiences derived from nine EU member states, which have already started Environmental Tax Reform, show that such a reform affects consumers’ behaviour in terms of energy savings and promotion and development of renewable resources use. Environmental Tax Reform concept is based on fiscal neutrality – increased tax burden is compensated through lowering of direct taxes or social security contributions.

Environmental Tax Reform concept is to be prepared according to the government’s program declaration. The task of preparation of the substantive part of the reform has been delegated to Ministry of the Environment. The project “Czech - German initiative on Environmental Tax Reform” aims at supporting the activity of the Ministry with a broad discussion amongst various partners which have no direct access to governmental policy making.

The main importance of the project is to increase public acceptance of Environmental Tax Reform with a help of transfer of the experiences with implementation of Environmental Tax Reform in Germany. The expected effect of the project would result in establishing of the network of partners from both countries which will ensure know-how transmission and enable prospective cooperation of partners in similar projects.

Czech - German initiative on Environmental Tax Reform is a conjoint project of Environmental Policy Unit from Free University Berlin and Prague based consultancy Ecoconsulting.