Further efforts are needed from companies to monitor the global landscape of green tax systems as an increasing number of countries are implementing carbon tax policies which pose challenges for trade businesses, experts said on Tuesday.

Vickie Tan, Greater China tax leader at the Ernst & Young (China) Advisory Ltd, said at the ongoing China International Fair for Trade in Services that it is important for businesses to closely monitor the global landscape of green tax systems and stay abreast of the evolving trends in tax policies on sustainability. Tan said it is crucial for companies to identify incentive measures within carbon tax policies to their advantage.

"Enterprises need to comprehensively understand applicable tax policies, including national and regional tax laws and policy documents specific to their industries. They should formulate proper energy-saving and emissions reduction plans while taking into full consideration factors such as taxes and carbon quota trading," Tan said.

"Furthermore, they should gain a comprehensive understanding of tax policies applicable to their own operations and related tax incentives to ensure they can apply for tax benefits that align with their needs," she said.

On the same day, EY released the sixth edition of their "Green Tax Tracker Report" during the CIFTIS, providing an overview of the latest developments in policy incentives to promote sustainability, carbon policies, environmental-related tax policies and tax exemptions as of June in 59 countries and regions globally.

The report covers approximately 2,000 incentive policies on sustainability, about 3,000 environment-related tax and tax exemption policies and 91 carbon policies. These 59 countries and regions represent over 90 percent of the global GDP.