A high ranking in the Index means that the government is more active than others in using its tax system to drive sustainable business and achieve green policy objectives. It does not necessarily mean that a country is “greener” than others.
Every country listed on the Index has a green tax system that deserves attention. Countries without any green tax incentives or penalties are not included in the sample of 21 countries reviewed here.
Companies that operate or plan to operate in these markets, particularly in the countries that rank higher in the Index, are advised to familiarize themselves fully with the details of those countries’ green tax systems and to include after-tax effects in their investment modeling calculations.
Consideration of after-tax effects can also help a company reduce exposure to green tax penalties, which in itself can provide additional funding and capital for investments.
The KPMG Green Tax Index, as well as providing a guidepost to businesses, offers an overview of the green tax landscape around the world and a broad summary of what governments are putting in place. For this reason, it may also be useful to governments, particularly those in the early stages of formulating green tax policies.