ADIT and the future of energy taxation

As the world grapples with the climate emergency and with many countries now embarking on the road to net zero carbon emissions, major implications for the taxation of energy production can be expected over the coming years as states seek to encourage the development of renewable and low-carbon forms of energy in place of traditional fossil fuels, while also preserving their tax revenues. From carbon pricing, emissions trading and environmental taxes to the potential deployment of subsidies, tax credits and other green fiscal incentives, tax professionals working in the energy sector will play an important role in advising their firms and clients on the practical tax implications of these changes as they emerge.

From 2022, the Upstream Oil and Gas module will be retitled ‘Energy Resources’, with its scope to be expanded over the course of future years to include emerging international tax topics beyond the exploration and production of oil and gas. The new module title has been announced to students and tuition providers with the publication of the 2022 edition of the ADIT prospectus and syllabus. This edition of the syllabus includes a new section focusing on carbon pricing, reflecting the World Bank’s most recent report on carbon pricing instruments around the world.

The Energy Resources module will retain its coverage of upstream oil and gas production for as long as such matters continue to be of relevance to international tax professionals in the energy sector, so rest assured that if you have already begun studying or preparing to sit the exam, there won’t be any major changes in the immediate term. Rather, the content of the module will expand over time to include energy tax subjects beyond oil and gas production as they emerge in the international tax discourse.

We hope students will enjoy learning about new methods of energy taxation, as we seek to ensure that ADIT continues to equip international tax professionals around the world with the technical knowledge and skills to achieve in their jobs and careers.