GEF Funds Environmental Fiscal Reform in Moldova

8 August 2011: The Global Environment Facility (GEF) has endorsed a project, to be implemented by the UN Development Programme (UNDP), to reform and develop fiscal instruments to improve targets under the three Rio Conventions in the Republic of Moldova. The Rio Conventions are: the Convention on Biological Diversity (CBD), the UN Framework Convention on Climate Change (UNFCCC), and the UN Convention to Combat Desertification (UNCCD).

The project will: focus on the reform of environmentally harmful subsidies; develop green subsidies; and look at environmental charges in the agricultural and energy sectors in five towns in Moldova. This will include improving the modalities for encouraging investments in eco-friendly technologies, as well as improving the regulation and management of Moldova's national and local ecological funds.

The project's activities will seek multiple environmental benefits. For example, by reforming how ecological taxes and environmental charges are levied on polluting industries that produce smog, the project will aim not only to reduce local atmospheric pollution, but also to reduce transboundary pollution in the form of acid rain, and reduce greenhouse gas (GHG) emissions. [GEF Press Release]