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The document examines how the OECD's global digital tax reforms, specifically Pillar One and Pillar Two, affect the extractive industries. While Pillar One's 'Amount A' excludes non-renewable resources, 'Amount B' lacks specific rules for mining, and Pillar Two's minimum tax presents risks regarding depreciation rules and revenue distribution for developing nations.

Colombia is the world's sixth-largest coal exporter, with the sector contributing approximately 1.1% of the national GDP and providing significant royalties. However, the global market is contracting as major importers in the Atlantic and Americas markets set phase-out dates for coal-fired power. While some industry associations suggest expanding into Pacific markets like China and India, high freight costs and those countries' own goals for carbon neutrality make this difficult. The Colombian government has historically supported the sector through various tax exemptions and incentives, such as the Plan Vallejo and Tax Refund Certificates. The report argues that Colombia must urgently diversify its economy and implement a just transition to mitigate the socio-economic risks of a structural decline in coal demand.

The Sustainable Landscape Finance Coalition, a partnership between WWF South Africa and Wilderness Foundation Africa, employs a four-stage 'Finance Solution Approach' to bridge the funding gap for biodiversity and landscape conservation. The Coalition has launched six incubators investigating tools such as biodiversity tax incentives, carbon payments, and green bonds, while scaling existing successes like the Section 37D tax deduction, which is projected to release R1.4 billion into protected areas by 2026.

The document examines the challenges and opportunities for private investment in Peru's waste sector to meet NDC goals. It evaluates specific technology options for landfills in Trujillo and San Juan Bautista, develops financial investment cases, and identifies systemic barriers such as high tax delinquency and lack of regulatory capacity. To address these, the paper proposes three priority measures: integrating waste tax collection into public utility bills, creating a national methodology for calculating waste service costs, and expanding the 'Work for Taxes' (OxI) scheme to final waste disposal infrastructure.

The document argues that Brazil's air conditioning sector suffers from low energy efficiency compared to international standards, partly due to industrial policies in the Zona Franca de Manaus (ZFM) that create distortions. It finds that the Basic Productive Process (PPB) requirements, such as the use of outdated national compressors, hinder the adoption of inverter technology and overall efficiency. Despite significant tax exemptions, the sector's productive and energy efficiency deteriorated between 2003 and 2015, contrasting with the stability of the broader Brazilian manufacturing industry. The authors recommend aligning industrial and energy policies to promote competitiveness and higher efficiency standards.

The report finds that the air-conditioning sector in Brazil suffers from low energy efficiency compared to international standards, with a deterioration in both productive and energy efficiency between 2003 and 2015. Despite significant tax exemptions provided by the Zona Franca de Manaus (ZFM), which accounted for approximately R$ 285 million in 2015 for the AC sector, these incentives have not translated into improved efficiency or higher wages for workers. The authors argue that the Basic Productive Process (PPB) requirements, particularly those mandating the use of outdated national compressors, create distortions that hinder the adoption of modern technologies like inverter compressors and suppress competition. Consequently, rising sales of inefficient AC units, driven by heatwaves and increased income, have led to a 237% increase in residential electricity consumption for ACs between 2005 and 2017.

The paper analyzes how the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) proposals—specifically Pillar 1 and Pillar 2—could affect the mining industry. It argues for the exclusion of the entire mining value chain from Pillar 1's 'Amount A' to protect the taxing rights of resource-rich countries and expresses concern that 'Amount B' and 'Amount C' could legitimize offshore marketing hubs and shift profits away from source countries. Regarding Pillar 2 (Global Anti-Base Erosion), the author supports a minimum tax to reduce costly tax competition but emphasizes that the rate must align with the mining sector's typically higher statutory rates (25% to 35%) and that mineral royalties should be excluded from the minimum effective rate calculation.

The report finds that despite significant tax exemptions, the industrial sector in the Zona Franca de Manaus (ZFM) shows no increase in productive or energy efficiency compared to the Brazilian national average. Analysis of the most representative sectors, including two-wheelers and audio/video, confirms that these incentives have not translated into comparative efficiency advantages.

The report analyzes the Zona Franca de Manaus (ZFM) as a public policy tool for industrial development in Brazil. It details the complex system of tax incentives—including exemptions and reductions in IPI, PIS/PASEP, and COFINS—and evaluates their distribution across key sectors such as two-wheelers, audio/video, and non-alcoholic beverages. The study compares the ZFM's industrial performance and workforce concentration against national Brazilian averages and provides a brief comparative overview of free trade zones in other countries including Argentina, Chile, Colombia, the US, Canada, and China.

The interim evaluation of the PROAmazonía project in Ecuador shows a mixed progress record as of December 2019. While the project is highly aligned with national policies and has made significant strides in land-use planning (Component 1) and REDD+ operational instruments (Component 4), it has struggled with the implementation of financial incentives and sustainable production transitions (Component 2). Budget execution stands at 31% (US$ 12,939,253 of US$ 41,172,739), hampered by high staff turnover and bureaucratic delays in ministerial approvals. Sustainability is rated as moderately likely, threatened by Ecuador's fiscal adjustment plan and political instability, though the project has successfully integrated gender strategies and established critical territorial coordination platforms.

Indonesia provides significant fossil fuel support, primarily through USD 17.7 billion in price supports for consumers, representing a 56% increase over the 2014–2016 average. While reforms occurred between 2014 and 2017, recent progress is rated as poor, with total government support averaging USD 28 billion from 2017 to 2019. The document highlights a lack of regular reporting and quantification of subsidies, including various tax incentives for upstream oil and gas contractors.

The report analyzes tax incentives across 104 mining projects in 21 developing countries, finding that while legislation is the primary source of incentives, African countries rely more heavily on discretionary contracts. The most common incentives are fiscal stabilization clauses and corporate income tax breaks, both of which pose significant revenue risks. The study notes that the use of these incentives peaked in the late 1990s and again during the 2014-2016 commodity price crash, suggesting a correlation between low commodity prices and more generous tax terms.

The document examines the use of tax incentives in the mining sector, particularly in developing countries, highlighting the risk of overly generous incentives that reduce government revenue. It specifically warns against unintended behavioural responses, such as the acceleration of production during time-limited tax holidays to maximize tax-free revenue, which ultimately depletes resources and lowers long-term fiscal receipts.

The FUTURE Act provides tax credits for CO2 captured from power plants, industrial sources, and direct air capture, with rates ramping up to $50/ton for saline storage and $35/ton for enhanced oil recovery by 2026. The credits are available for 12 years to projects that commence construction within a six-year window. Assessments by the IEA and DOE suggest the act could increase capture capacity or reduce emissions by 10 to 30 million tons by 2030, with significant interest from industrial sources and companies like Occidental Petroleum.

The document examines the political economy of coal subsidies in Colombia, identifying various fiscal incentives and the strategies used by a coalition of government and industry actors to protect them. It highlights how the coal sector benefits from both sector-specific and general mining incentives, often framed as essential for national economic development or the funding of the peace process. The paper analyzes three specific cases: the Plan Vallejo, a special income tax deduction for fixed assets, and a royalties rebate, to illustrate how these subsidies are introduced, maintained, or eventually removed through political and legal processes.

The document introduces a four-step framework for estimating the total cost of mining tax incentives by combining direct revenue losses with behavioural costs. It presents the IGF Mining Tax Incentives Financial Model, a tool pre-configured for a medium-sized surface gold mine in sub-Saharan Africa, which allows users to simulate how investors might change operations or financing to maximise incentives. The guide details specific behavioural risks, such as high-grading in response to tax holidays and excessive interest deductions following withholding tax exemptions, and provides methodologies for testing these estimates through scenario modelling and sensitivity analysis.

The document introduces a financial modeling framework designed to calculate the total loss of public revenue resulting from mining tax incentives. It distinguishes between 'direct costs' (the immediate loss of tax revenue) and 'behavioral costs' (revenue losses caused by investors adjusting their operations to maximize the benefit of incentives). The guide accompanies a beta financial model pre-configured for a medium-sized open-pit gold mine representative of Sub-Saharan Africa, following the FAST standard for transparency and adaptability. It details specific behavioral risks such as 'high-grading' in response to income tax exemptions, excessive interest deductions following withholding tax exemptions, and the under-invoicing of minerals under progressive royalty schemes. Additionally, it provides methodologies for testing cost estimates through scenario modeling and sensitivity analysis to determine if incentives are 'well-oriented'—meaning they provide more value when project viability is lowest.

The document introduces a financial model developed by the Intergovernmental Forum on Mining, Minerals, Metals and Metals (IGF) to help governments quantify the impact of tax incentives on public revenues. It emphasizes that conventional cost estimates often overlook 'behavioral responses'—actions taken by investors to maximize financial gains from incentives—which can significantly increase revenue losses. The guide outlines a four-step framework: estimating reference revenues, calculating direct costs, estimating behavioral costs, and determining the total revenue loss. It provides specific examples of behavioral risks, such as 'high-grading' (écrémage) in response to tax holidays, excessive interest deductions following withholding tax exemptions, and under-invoicing of ore sales under progressive royalty schemes. The document also advocates for the use of scenario modeling and sensitivity analysis to test the robustness of these estimates and determine if incentives are effectively targeted to support marginal investments.

Australia employs a balanced approach to local procurement, combining national regulatory frameworks like the Australian Industry Participation (AIP) National Framework with state-level policies and Indigenous Land Use Agreements (ILUAs). Key demand-side measures include requiring AIP plans for projects exceeding AUD 500 million, while supply-side support is provided through the Supplier Access to Major Projects (SAMP) program and the ICN Gateway database. The country also aligns its education system with the needs of the Mining Equipment, Technology and Services (METS) sector and has previously used tax incentives like the Enhanced Project By-Law Scheme to reward firms implementing AIP plans.

The document argues that tax incentives in the mining sector are often ineffective at attracting investment due to the location-specific nature of mineral resources and can lead to significant revenue losses. It provides a framework for reviewing incentives, identifying high-risk behavioural responses—such as 'high-grading' during tax holidays or abusive transfer pricing in export processing zones—and offers recommendations for better design, including the use of incremental sliding-scale royalties and the avoidance of 'cliff-edge' fiscal changes.