The UN sustainable development goals and tax incentives

The purpose of the session is to discuss the relationship between the U.N. Sustainable Development Goals (the “SDGs”) and tax incentives. While countries have committed to promoting incentives in the private value chain in support of the SDGs, tax incentives have proved controversial.  Some commentators claim that tax incentives undermine the objectives of the SDGs, citing the detrimental impacts on tax revenue and design flaws. Much of this criticism has centred on the effectiveness of measures adopted by Developing Countries to attract private sector inward investment.  However, the role of private sector capital allocation in support of the SDGs extends far beyond the efforts of low and middle income countries to attract foreign direct investment.  The vast majority of capital used to finance renewable energy, for example, is provided by the private sector and much of the world’s biodiversity rich land is privately owned. 

The session will explore the role of tax incentives beyond the usual bailiwick of foreign direct investment, to consider, for example, whether well designed tax incentives for investment in renewable energy projects may reduce the cost of funding for renewable energy production or whether biodiversity conservation initiatives which afford landowners tax incentives in return for sustainable land management policies may halt biodiversity loss. The session will also consider whether there is scope for intergovernmental bodies to provide additional frameworks and standards in support of the design and oversight of tax incentives in support of the SDGs.

To register for this discussion, please email Agata Dybisz