“…It was first established in the early 1990s in the Brazilian state of Paraná to allocate ICMS (Imposto Sobre Circulação de Mercadorias e Serviços) 1 (Loureiro, 2002). Other states followed Paraná and also adopted ecological indicators to redistribute ICMS, mainly to extend protected areas (PA) and to compensate local governments for the positive externalities derived from biodiversity conservation (Grieg-Gran, 2001;Ring, 2008;Droste et al, 2017d;Paulo and Camões, 2019b). Over time, other ecological criteria were introduced in these schemes, such as water conservation policies (Paulo and Camões, 2020), solid waste management (Silva et al, 2012), reforestation, and fire control.…”