The Energy Foundation's China Sustainable Energy Program (CSEP) has undertaken amajor project investigating fiscal and tax policy options for stimulating energy efficiencyand renewable energy development in China. This report, which is part of the sectoralsub-project studies on energy efficiency in industry, surveys international experiencewith tax and fiscal policies directed toward increasing investments in energy efficiency inthe industrial sector. The report begins with an overview of tax and fiscal policies,including descriptions and evaluations of programs that use energy or energy-relatedcarbon dioxide (CO2) taxes, pollution levies, public benefit charges, grants or subsidies,subsidized audits, loans, tax relief for specific technologies, and tax relief as part of anenergy or greenhouse gas (GHG) emission tax or agreement scheme. Following thediscussion of these individual policies, the report reviews experience with integratedprograms found in two countries as well as with GHG emissions trading programs. Thereport concludes with a discussion of the "best practices" related to internationalexperience with tax and fiscal policies to encourage investment in energy efficiency inindustry.