FISCAL INCENTIVES AND ENVIRONMENTAL SUSTAINABILITY: A LEGAL ANALYSIS OF CARBON CREDITS FROM THE PERSPECTIVE OF EXTRAFISCALITY

Abstract

This study aimed to analyze the role of tax incentives in promoting environmental sustainability, with particular emphasis on their capacity to induce economically viable and environmentally responsible behaviors within productive activities. The research was guided by the following question: how can tax incentives be effectively used as instruments of environmental policy to encourage sustainable practices, with special attention to the operationalization of carbon credits in the context of reducing greenhouse gas emissions? The research was based on the premise that tax incentives, traditionally conceived as mechanisms to stimulate economic development, can also play a strategic role within the environmental agenda by conditioning tax benefits on the adoption of sustainable business practices. Among the instruments analyzed, the study focused specifically on carbon credits, recognizing their potential to generate tax advantages linked to climate change mitigation. Methodologically, the research adopted a deductive approach, employing bibliographic and documentary analysis. Sources included environmental tax legislation, specialized literature, and theoretical studies addressing the use of tax incentives as instruments of environmental public policy. The results indicated that tax incentives—particularly those related to carbon credits—are relevant mechanisms for integrating economic development and environmental protection. Such instruments reinforce the centrality of sustainability within contemporary tax policy guidelines by promoting the transition to low-carbon production models.