A country’s/regions/ tax regime is a key policy instrument that may negatively or positively influence investment, innovation and growth of industries and sectors. Governments and Policy makers are therefore encouraged to ensure that their tax system imposes an acceptable tax burden that can be accurately determined, and which keeps tax compliance and tax administration costs in check. A central challenge for policy makers aiming to encourage environmental sustainability is carefully weighing the relative advantages and disadvantages of alternative tax policy choices that would be attractive to green businesses.