10th OECD Forum on Green Finance and Investment

Transitioning to net-zero: the role of carbon pricing and corporate income tax

Carbon prices are a key element among the range of policy instruments that countries can use to reduce greenhouse gas emissions. They often take the form of prices of tradeable emission permits or carbon taxes. Tax policy can contribute to mitigation policies in other ways, for example through personal and corporate income taxation, which can influence the carbon-intensity of consumption, production and investment choices. Tax and fiscal policy can also help shape distributional outcomes. This session will focus on the role of carbon pricing and will address potential corporate income tax perspectives.