Since the Global Financial Crisis, policymakers around the globe have focused increasingly on financial sector taxes as a way to generate revenue and achieve broader policy goals.
In parallel, climate-related taxes are on the rise. So far, however, there has been little focus on ways to use financial sector tax instruments to support climate goals. Financial sector taxes are largely ignored in reports of expert groups and policy initiatives. In order to fill this gap, this report examines financial sector taxes through the lens of environmental policy.
The authors examine three ways to better reconcile financial sector taxes with climate goals:
1.The implementation of a tax incentive on green saving schemes
2.Adjusting bank levies on green / high-carbon assets
3.Introducing a financial transaction tax (FTT) on high-carbon assets, or exempting green assets from an FTT