The COP26 UN Climate Change summit in Glasgow ended on 14 November. Speaking at the conclusion of the conference, UN Secretary-General António Guterres described the outcome of COP26 as a compromise which reflected ‘the interests, the contradictions and the state of political will in the world today,’ adding: ‘It is an important step, but it is not enough.’
Under the resulting ‘Glasgow climate pact’, nearly 200 countries have agreed to set nationally determined contributions (NDCs) aligned to a 1.5˚C path and to keep alive and finalise the outstanding elements of the Paris Agreement. Governments will update their NDCs annually, with the expectation that this will result in further environmental legislation.
In a client briefing, Sheena McGuinness, tax partner at RSM, observed: ‘To deliver on the aspirations of COP26, the UK government will need to be cognisant of the forthcoming regional and sectoral disparities as the UK delivers on its decarbonisation promises and introduces tax policies to mitigate any resultant inequality. It is undeniably a big job for the chancellor to implement tax policies that can spread the cost and the savings across all sectors to ensure fairness. Layered on top of the domestic challenge is the international political minefield of carbon border taxes. It seems, despite the deforestation, we are not out of the woods.’
The COP26 UN Climate Change summit in Glasgow ended on 14 November. Speaking at the conclusion of the conference, UN Secretary-General António Guterres described the outcome of COP26 as a compromise which reflected ‘the interests, the contradictions and the state of political will in the world today,’ adding: ‘It is an important step, but it is not enough.’
Under the resulting ‘Glasgow climate pact’, nearly 200 countries have agreed to set nationally determined contributions (NDCs) aligned to a 1.5˚C path and to keep alive and finalise the outstanding elements of the Paris Agreement. Governments will update their NDCs annually, with the expectation that this will result in further environmental legislation.
In a client briefing, Sheena McGuinness, tax partner at RSM, observed: ‘To deliver on the aspirations of COP26, the UK government will need to be cognisant of the forthcoming regional and sectoral disparities as the UK delivers on its decarbonisation promises and introduces tax policies to mitigate any resultant inequality. It is undeniably a big job for the chancellor to implement tax policies that can spread the cost and the savings across all sectors to ensure fairness. Layered on top of the domestic challenge is the international political minefield of carbon border taxes. It seems, despite the deforestation, we are not out of the woods.’
