Green tax incentives: an opportunity or a threat?

The past couple of years have seen a shift in the environmental strategy of businesses. Rather than just offsetting their carbon emissions businesses increasingly want to be actively involved in solving the world’s environmental problems. This shift is not merely due to an enhanced awareness of net zero targets but also reflects the growing importance of the environmental component of businesses’ ESG policies to stakeholders such as customers and employees.

Innovation of green technology requires huge capital investment and businesses will be attracted to jurisdictions where there are tax reliefs to mitigate the impact of these costs. With businesses looking to make long term decisions as to where to locate these activities governments have...