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Climate change tax policy: what you need to know

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COP 26 ended with the Paris Agreement global warming targets kept alive, just. Increasingly, the use of tax and carbon pricing as a policy tool has entered general debate. Countries which impose a price on carbon put themselves at a competitive disadvantage against others, so international consensus is important. The EU and UK have set out their stalls, taking slightly different approaches at different speeds. The OECD wants to find consensus for a global, uniform carbon pricing system. Tax policy isn’t just about explicit carbon pricing. Heads of tax need to keep an eye on developments, and push for audit and reform of the tax system overall to help meet personal business goals.

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