Climate Clubs: An International Tax Law Perspective - Alice Pirlot

Alice Pirlot presents ‘Climate Clubs: An International Tax Law Perspective’, as part of the International Tax Governance and Justice workshops.

To register for this workshop, please email Peter Lernyei.

Abstract:

Global carbon pricing has often been portrayed as an interesting idea that will never be implemented due to political hurdles. Yet, this description is being challenged: growing political support for climate clubs suggests that a global carbon price might become reality in the future. This article investigates the conditions for the adoption and implementation of a climate club based on a global carbon price by comparing it to the international corporate tax club created by Pillar Two, which was also described as politically impossible a few years ago. This comparison highlights that establishing a climate club will require addressing design issues and institutional obstacles that might be even more complex than those that characterized the negotiations of the global anti-base erosion (GloBE) rules.