In November 2002 the OECD-Development Assistance Committee (DAC) Network on Development Cooperation and Environment (ENVIRONET) mandated the development of a Work Program on Environmental Fiscal Reform (EFR) to explore issues relating to fiscal and market-based policies for poverty reduction and environmental management. An essential part of the program is the development of a reference paper on Environmental Fiscal Reform. The EFR process has been enriched by separate sector case studies including international workshops on fiscal reforms in the forestry and fishery sector as well as country case studies (China, India and South Africa). The results of the various fields of work were presented and discussed at a synthesis workshop on Environmental Fiscal Reform hosted by BMZ/GTZ from 24-25 November 2004 in Berlin. This document presents the workshop proceedings, draft paper on EFR and country case studies.