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The report finds that tax incentives are a primary feature of investment laws in EMDEs, often driven by investment promotion agencies (IPAs) with limited involvement from ministries of finance (MoFs). This institutional disconnect leads to fragmented governance, revenue losses, and increased exposure to investor-state dispute settlement (ISDS) claims. While some countries are moving toward centralizing incentives under unified legal frameworks, monitoring and evaluation mechanisms remain limited and disconnected from policy-making.

The report analyzes 105 national investment laws in EMDEs, finding that 67.6% explicitly provide incentives, with tax incentives being the most dominant. It highlights a systemic gap in coordination between Investment Promotion Agencies (IPAs), which typically lead the design and administration of these laws, and Ministries of Finance (MFs), which are often marginalized in the legal text. This fragmentation leads to risks of revenue loss, inefficient resource allocation, and exposure to Investor-State Dispute Settlement (ISDS) claims. The document notes a trend toward centralizing tax incentives into unified legal frameworks to improve transparency and fiscal discipline, as seen in Ghana and Honduras.

The report examines the nexus between youth employment and Climate Smart Agriculture (CSA) technology in Ghana. It finds a significant disconnect between national policy frameworks and the operational realities of youth-led startups, which face severe constraints in financing, regulatory compliance, and market adoption. While Indigenous knowledge is heavily integrated into product design, it lacks formal policy support and documentation. The study recommends streamlining business registration, operationalizing the National Green Jobs Strategy, and creating targeted financial and gender-inclusive support systems to scale CSA tech as a viable employment pathway for Ghanaian youth.

The document highlights a critical gap in investment governance: while international investment treaties have undergone significant reform, investor-state contracts remain largely marginalized and outdated. These contracts often contain stabilization clauses and tax incentives that restrict a state's regulatory space and can neutralize treaty-level safeguards. The brief also notes a rise in contract-based investor-state dispute settlement (ISDS), which is often more opaque than treaty-based arbitration. To address these risks, the authors recommend strengthening national institutional coordination, centralizing and assessing existing contracts, and developing national model contracts. Globally, they advocate for integrating contract reform into broader investment governance discussions and developing regional guidance to reduce negotiation asymmetries.

The policy brief highlights how investment contracts—often overlooked in favor of treaty reforms—can create regulatory restrictions and financial losses for states. It identifies risks from outdated stabilization clauses and tax incentives, and notes a rise in contract-based investor-state dispute settlement (ISDS) cases. The authors propose a three-pronged national strategy: strengthening inter-ministerial coordination, creating centralized contract inventories, and developing national model contracts aligned with international sustainability standards.

The document highlights the risks posed by outdated and opaque investment contracts, such as stabilization clauses and tax incentives, which can limit a state's regulatory space and lead to costly international arbitration. It proposes a three-step national reform strategy: improving inter-ministerial coordination, centralizing and evaluating existing contracts, and developing standardized model contracts. It also calls for greater alignment between contract reform and broader regional and global efforts to modernize investment governance.

Laos has updated its Investment Promotion Law to reform the design and administration of tax incentives, moving away from overly generous and broad benefits that led to revenue leakage. With support from the IISD, the government introduced narrower eligibility criteria, capped incentive durations, and strengthened monitoring and screening processes to ensure investments align with sustainable development priorities and fiscal stability.

The report inventories quantified energy subsidies in South Africa, detailing nominal and real values from FY 2018 to FY 2025. It identifies a wide range of support mechanisms, including VAT zero-rating for liquid fuels, Eskom bailouts, and carbon tax exemptions, while also listing specific incentives for renewable energy and energy storage. The document applies the World Trade Organization's definition of subsidies to categorize these financial contributions and provides a breakdown of government guarantees as contingent liabilities.

The report argues that tax and royalty policies for non-metallic minerals should be tailored to the specific economics of each mineral, as standard frameworks for metallic minerals may be inappropriate. It suggests that unit-based royalties are effective for minimizing administration costs when revenue potential is limited and cautions against the use of tax incentives due to their poor track record in promoting investment. The study estimates that over USD 217 billion of non-metallic minerals are produced annually across 66 countries.

The report examines the fiscal and non-fiscal conditions necessary for resource-rich developing countries to optimize the balance between mineral production revenues and the benefits of downstream processing. It identifies stable legal frameworks, reliable infrastructure, and domestic markets as primary enablers, while production- and cost-based fiscal incentives serve as secondary supports that require careful calibration to avoid inefficiency.

The document highlights the role of US states in decarbonizing heavy industry, specifically petroleum refining, chemicals, iron and steel, and cement manufacturing. It outlines various technology pathways—such as CCUS, electrification, and hydrogen—and provides a menu of state policy tools including financial support, demand stimulation, and permitting reform to drive investment and deployment.

The report argues that tax incentives for critical mineral value addition are secondary to primary non-tax enablers such as infrastructure, regulatory stability, and clear national strategies. It analyzes the value chains of copper, lithium, and nickel, noting that while production-based, cost-based, and profit-based tax incentives can attract investment, they risk revenue loss if projects are not commercially viable. The document highlights varied national approaches, such as Indonesia's nickel export bans and Australia's production tax credits, and recommends rigorous financial modelling to ensure that downstream incentives do not result in a net loss of government revenue compared to raw ore exports.

The report argues that fiscal incentives are secondary to 'primary' non-fiscal conditions—such as stable regulatory frameworks, reliable energy and transport infrastructure, and clear national strategies—which are essential for the commercial viability of mineral processing. Using case studies from countries like Indonesia, Australia, and Zambia, it examines tools such as variable royalty rates, investment tax credits, and export restrictions. It warns that without rigorous economic modelling, policies like export bans or tax holidays can lead to significant revenue losses, deterred investment, or the support of commercially unviable projects.

The report argues that non-metallic minerals—such as sand, gravel, and potash—differ from metallic minerals due to lower revenue potential, stronger domestic economic linkages, and a lack of benchmark prices for many varieties. It proposes a typology for royalties and transfer pricing based on a mineral's export propensity, price volatility, and the availability of benchmark prices. Key recommendations include using unit-based royalties for low-value construction materials to minimize administration costs, and ad-valorem royalties for high-value exports like graphite and potash to maximize revenue. The document also addresses cross-cutting issues such as environmental taxation, the formalization of artisanal mining through lower tax burdens, and the risks associated with tax incentives and export restrictions.

The report examines the financial and regulatory incentives needed to accelerate the decarbonisation of China's steel industry. It highlights a significant investment gap, noting that while pilot regions like Hebei have introduced sector-specific taxonomies and transition plan templates, national-level frameworks remain underdeveloped. The document argues that current incentives are insufficient for steelmakers due to high upfront costs and for financial institutions due to a lack of unified identification standards. It recommends expanding public subsidies, refining the capacity replacement policy to include carbon intensity criteria, and creating demand-side incentives for purchasers of low-carbon steel.

The report argues that the Opportunity Zone program, created by the 2017 Tax Cuts and Jobs Act, serves as a subsidy for private equity firms rather than a tool for community redevelopment. PESP identified $16.2 billion raised for Qualified Opportunity Funds (QOFs) by approximately 200 firms, with Bridge Investment Group Holdings, CIM Group, and Griffin Capital Company among the top beneficiaries. The document details how firms profit via capital gains tax deferrals and annual management fees, often ranging from 1.25% to 2%. Case studies in Los Angeles, Atlanta, and Arizona suggest the program encourages the development of luxury housing and the displacement of low-income residents through 'substantial improvement' requirements that necessitate evictions. The report also highlights political ties between major QOF investors and the Trump administration, and criticizes the lack of federal reporting requirements to track the program's actual impact on poverty.

Indonesia aims to deploy 2 million electric cars and 12 million electric two-wheelers by 2030 to reduce carbon emissions and leverage its nickel reserves for battery production. To achieve this, the government implemented a VAT reduction (from 11% to 1%) for EVs meeting a 40% local content requirement and a 0% import duty for foreign manufacturers who commit to building domestic factories by 2026. While these policies have increased EV sales—with BYD alone accounting for half of total EV sales following the import policy—they have created market imbalances. Established players like Hyundai, which invested in charging infrastructure and local battery production, have seen sales drop and have responded by restricting public charging stations to their own vehicles. The document warns that conflicting incentives and low local content thresholds may lead to a temporary boom of imported vehicles rather than a robust domestic ecosystem.

The report examines the prevalence and impact of mining tax incentives in Africa, concluding that they are largely ineffective at attracting foreign direct investment (FDI) and instead facilitate revenue loss and illicit financial flows. It highlights that factors such as mineral quality and political stability are more critical to investors than tax breaks. The document argues for a shift toward performance-based incentives, the adoption of the OECD/G20 global minimum tax, and regional tax harmonization to prevent a 'race to the bottom' and support the goals of the Africa Mining Vision.

The report analyzes the prevalence and effects of tax incentives in Africa's mining sector, concluding that these measures frequently result in substantial public revenue losses and encourage aggressive tax avoidance. It argues that mining investments are driven more by resource quality and political stability than by tax breaks. The document recommends that African nations move away from generous, contract-based incentives and instead adopt regional tax harmonization and targeted, time-limited incentives linked to specific development goals, such as mineral processing and the energy transition.

The document outlines various carbon dioxide removal (CDR) strategies, categorising them into natural/biotic and technological/abiotic approaches. It highlights the United States' leadership in the sector, supported by billions of dollars in public investment and tax incentives, while noting a significant gap between current trajectories and midcentury needs.