Tax reforms, corporate innovation and greener growth, the Global Green Growth conference held here this week offered a new view on how to combat global climate change.

Rather than discussing the framework for a legally binding global treaty, the conference, sponsored by the Danish government, focused on sustainable growth, regarding it as a win-win situation for companies to start innovating new green technologies, in contrast to presenting environmental regulations as an obstacle.

Organization for Economic Cooperation and Development (OECD) secretary-general Angel Gurria highlighted the link between green taxes and environmental innovation.

"The Nordic countries are inspiring us. They are creating inspirational structures and goals, laws and regulations. The environmental community should look carefully at what is happening in the Nordic region," Gurria said in an exclusive interview with Xinhua during the conference.

According to the OECD, green taxes actually do not necessarily mean a higher overall taxation income.

"Green taxation doesn't necessarily mean higher taxes. It can also mean a change in the composition of the tax system," said Jens Lundsgaard, deputy head of the OECD's Tax Policy & Statistics division. "It uses the revenue from environmental taxes to cut other taxes that impede growth."

GREEN NORDIC COUNTRIES LEAD IN GREEN GROWTH

The Nordic country of Sweden is applauded in a newly released OECD report. Statistics show clearly the influence of a Swedish tax on nitrogen oxide emissions on the overall innovation of cleaner coal power. Within a couple of years, the overall nitrogen oxide emission per gigawatt of electricity generated had fallen by a third.

Furthermore, patents on nitrogen oxide emission-saving technologies rapidly increased in Sweden.

Danish Minister for Climate and Energy Lykke Friis is committed to a green plan. Recently, the Danish Climate Commission, an advisory board set up by the Danish government, urged the government to completely get rid of fossil fuels by 2050.

"Denmark is a first-mover in regards to energy efficiency and going CO2-neutral," Friis told Xinhua in an interview this week.

"I guess that Denmark will be able to cooperate with China on this area. China is moving very, very fast and, combined with a first-mover like Denmark, there is a synergy."

Denmark is home to the world's largest wind turbine manufacturer, Vestas, which had annual revenue of 6.64 billion euros (9.16 billion U.S.dollars) in 2009.

Nordic countries were not the only stars at the conference. Young Soo-gil, chairman of the South Korean Presidential Committee on Green Growth, was also telling the audience about the importance of the government's role in defining a clear environmental strategy.

"Government could play a key role in enabling firms to overcome inherent handicaps. There is, of course, the risk that governments overdo their role. That is why an intensive dialogue between private sectors and the government exists," Young said at the conference.

Source: Xinhua

2010-11-15