Appetite for change

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The PricewaterhouseCoopers report 'Appetite for change: Global business perspectives on tax and regulation for a low carbon economy' takes a close look at attitudes in the international business community towards environmental regulation, legislation and taxes. In almost 700 interviews in 15 countries, executives share their perspectives on issues such as the impact of climate change, the role of government, preferred environmental policy tools, and the essential ingredients for an effective global climate change deal.

 

Executive summary

 

The report offers the following insights into corporate thinking on the subject of how tax and regulation can help drive a low carbon economy:

  • In the battle against climate change, government leadership is indispensible
  • The business community is ready for, and supportive of, government action
  • Business leaders around the world recognise the need for meaningful emissions targets
  • Carbon taxes, emissions trading and incentives have widespread support in the business community
  • Businesses generally believe that existing environmental taxes, regulations and incentives are ineffective, inconsistent and unclear
  • Businesses want clear long-term investment signals, and input into the formulation of direction and derivative policies
  • Certainty and simplicity are the biggest challenges for carbon trading; for carbon taxes, the key issues are flexibility and the availability of incentives
  • Executives prefer the hypothecation of carbon and other environmental taxes, i.e. the use of taxes to fund environmental and low carbon programmes
  • Government action on climate change will increase the importance of regulatory compliance, reputation management and stakeholder relations
  • Corporate climate change strategies will affect operations, key performance indicators and innovations, around new products and services
  • A growing number of businesses are developing strategies to manage the uncertainty surrounding climate change, but they remain hopeful that governments and business can work together to create consistent policies that halt global warming

 

Download the survey