May P. H., Maria Fernanda Gebara, G. Lima, C. Jordão, P. Nogueira, M. Grieg-Gran. 2013.

What is the role of the Ecological ICMS (ICMS-E) in promoting local biodiversity conservation and social equity in Mato Grosso?

The ICMS-E – a state-to-municipal level Ecological Fiscal Transfer (EFT) instrument in operation for over 20 years in Brazil – has been considered a valid instrument to promote conservation. However, despite contributing revenues superior to predominant forest destructive land use practices, the ICMS-E has not stimulated additional biodiversity protection in NW Mato Grosso. More effective conservation can be attained by promoting local institutional innovation, to encourage the allocation of additional EFT revenues to strengthen municipal environmental governance.