Interplay Between Carbon Trading And MNC's Transfer Pricing Strategies

Starting from The United Nations Framework Convention on Climate in 1992, Kyoto Protocol in 1997, L 'accord de Paris in 2015, COP 26 in Glasgow 2021 and COP 27 in Egypt 2022 – where the international community agreed to work towards the common aim of limiting the Greenhouse gases (GHG) emissions, the fight against climate change has led to significant developments over the past decades. It was at Kyoto that participating countries set up the target to restrict and control the emission of GHG by setting emission reduction targets. With that aim in mind, at COP 26 participating countries agreed to take significant steps towards future of carbon markets.

Countries and Multinational National Corporations (MNCs) across the globe have been developing strategies for lowering GHG emissions and achieving a net-zero position. MNCs are evolving strategies to different regulations across different countries in the form of carbon taxes and emission trading systems, and