Greenium and Profit shifting: Difference between pages

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imported>Doug Williamson
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''Sustainability - sustainable finance - pricing.''
''Tax''.


Greenium is a compound of "green premium".
Tax payer action that reduces the taxable profit in a jurisdiction by shifting it to a jurisdiction where it will be taxed at a lower rate or not taxed at all.  


In this context, greenium means the saving that an issuer can enjoy on its cost of borrowing, because it is issuing a green instrument.
This is generally seen by tax authorities as potentially abusive, even if legal.




Investors are willing to pay more - reflected in a reduced investment yield - for the perceived benefits of investing in the green instrument.


== See also ==


:<span style="color:#4B0082">'''''Issuers enjoy greenium'''''</span>
* [[Base erosion and profit shifting]]
 
* [[Tax avoidance]]
:"Investor interest in sustainability-linked bonds (SLB) is clear from the ‘greenium’ or pricing benefits issuers have enjoyed.
* [[Tax evasion]]
 
* [[Transfer pricing]]
:Tesco’s [January 2021] SLB, for example, priced 15bps inside its secondary curve."
 
:''Agnes Gourc and Cecile Moitry - co-heads, sustainable finance markets - BNP Paribas - The Treasurer online - 10 June 2021''
 
 
== See also ==
* [[Bond]]
* [[bp]]
* [[Green]]
* [[Premium]]
* [[Return]]
* [[Term premium]]


[[Category:Compliance_and_audit]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Compliance_and_audit]]
[[Category:Ethics]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 07:02, 15 September 2014

Tax.

Tax payer action that reduces the taxable profit in a jurisdiction by shifting it to a jurisdiction where it will be taxed at a lower rate or not taxed at all.

This is generally seen by tax authorities as potentially abusive, even if legal.


See also