Climate impacts on taxation
Our MCP climate models show that extreme weather events and hazards will become more severe and frequent – and far more rapidly than many (including experts) currently seem to believe.
Managing extreme weather events, hazards and associated disasters will cost significant amounts of money, while simultaneously eroding the tax base. We expect these fiscal challenges to emerge in the next few years, on the heels of the Covid-19 economic downturn and while governments are still dealing with the consequences of various stimulus packages, increased spending, significant budget disruptions and increases in debt. Managing this situation – what we call a “climate fiscal risk” – will require some governments to make significant, urgent changes in taxation.
Contact us to find out more about our analysis of climate fiscal risk and how it can affect to your business.