The green taxation at local level is still largely unexplored. Even if the regulation sets strict limits to local authorities for putting in place new environmental taxes, in many cases the local authorities can easily modify the existing local taxes and fees taking into account the environmental interests. Since the local taxes and fees are mainly levied on non-ETS sectors, the green local fiscal policies can be an important driver to reduce the 60% of the global GHG emissions proceeding from transport, buildings, non-ETS industry and waste.
The LOCAL4GREEN project - funded by the ERDF and IPA in the framework of the Interreg MED programme 2014-2020 – is being implemented by 10 partners from 9 Mediterranean countries, led by the Valencian Federation of Municipalities and Provinces (Valencia, Spain). The project supported more the 70 pilot municipalities to design and implement more than 100 fiscal policies to promote the Renewable Energy Sources (RES) at local level, such as: real estate tax and economic activities local tax reductions for taxpayers using RES; allocation of the tourist tax revenues to promote RES in hotels and tourist sector; etc.