G20 countries agree on climate action and international business tax rate

In Italy, the G20 major economies and the EU have met focusing on coordinated action in reducing greenhouse gas emissions. The second key area of talks has been the harmonisation of tax principles to act against the tax optimisation of large companies taking place via declaring profits in low-tax rate territories, British public broadcaster BBC reports.
The G20 group, made up of 19 countries and the European Union, met over the weekend in Italy. Italian Prime Minister Mario Draghi noted in his closing statement that all of the G20 countries are committed to reaching the target by the mid-century. Net zero emissions means reducing greenhouse gas emissions as much as possible, until a country is absorbing the same amount of emissions from the atmosphere that it is putting out. Scientists have found that this must be achieved by 2050 to avoid a climate catastrophe, and most countries have agreed to this.
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And yet China – the world’s leading polluter – and Russia have pushed that target further to 2060.
Also at the two-day meeting, the focus was on Covid-19 and the economy, with an agreement being reached on a global tax rate which will see the profits of large businesses taxed at least 15%. The deal follows concern that multinational companies are re-routing their profits through low tax jurisdictions, BBC reports.