Transfer Pricing and Environmental Taxation: Carbon Credits

By the end of 2021, over 80 countries representing almost 75% of global emissions announced commitments to achieve net zero emissions. These “commitments” essentially translate into decarbonization rules or legislation. Following the Paris Agreement, countries party to the Paris Agreement put climate plans in place to cut their Green House Gas (GHG) emissions and set Nationally Determined Contributions (NDCs) that serve to measure progression towards reducing their GHG emissions. Examples of commitments include utility decarbonization rules that intend to transition from brown and black coal-based electricity generation to low-emission renewable energy or can encourage switching to clean (or green) Hydrogen. ...