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Taxation of Energy Sector Multinationals

   

Added on  2019-09-19

17 Pages5551 Words484 Views
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INTERNATIONAL ENERGYAND CLIMATE CHANGELAW
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1Table of ContentsIntroduction......................................................................................................................................2Globalization has changed the world we live in..............................................................................2Issues in global energy sector..........................................................................................................3Environmental Impacts of multinational companies through the activities undertaken by them in energy sector....................................................................................................................................3Need for strict laws at national and international levels..................................................................4The Organization of the Petroleum Exporting Countries................................................................5Enactment of International laws......................................................................................................5Environmental protection- the major concern.................................................................................6Environmental Impact Assessment (EIA).......................................................................................7Various international laws for the protection of environment from adverse impacts of energy generation........................................................................................................................................7International organizations working for the protection of environment and people.......................8Various agreements for the protection of environment from the adverse impacts of energy generation........................................................................................................................................9International environmental treaties for the protection of environment and climate change from the impacts of the energy generation by multi-national companies..............................................10Taxation laws for the multi-nationals engaged in energy sector...................................................11Court decision................................................................................................................................12Conclusion.....................................................................................................................................13References......................................................................................................................................14
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2IntroductionIn this present paper, we will discuss the protection provide by international law and redress mechanisms for local communities which are affected by the adverse environmental and other activities of multinational companies in energy sector. The energy industry is considered to be very complicated especially due to the reasons like its international scope, due to the magnitude of the sources of energy, the transactions that form a part of energy industry and due to its ever evolving nature. Earlier the sources of energy like oil, coal, gas, and nuclear power were there and were known as the traditional sources of energy. But recently some complementary sources of energy have added on and thus have expanded the scope of energy industry and these additional resources include solar, geothermal, wind, biomass, hydropower and hydrogen. Generally the transactions which for a part of energy sector includes activities like bidding arrangements to exploration, drilling, exploitation, transportation, marketing and many more. There are various harmful gases which are exhausted by the energy sector that impacts on the lifeof human in the local communities so the international law helps to protect the local communities through providing various rights to the local community and it also provide some limits to the energy sector in order to maintain the ecological balance of the universe. Globalization has changed the world we live inThe globalization is mainly defined as the integration of an economy with the rest of the world which enable to generate large market opportunities for the companies in order to generate high revenue within the specific period of time but in the oil and gas sector after the globalization the emission of harmful gases has been tremendously increased which impacts on the local communities adversely. The globalization allows trading in other countries which has increased competition in the market due to which environment is harming very badly. Earlier the oil industry was dominated by the “seven sisters” who were considered as the major oil companies around the globe. But now, many multi-national oil companies which work independently have become strong players in the oil industry. There are many state oil companies also which have been dominating the industry today in terms of reserves. These economic players (mainly the Multi-national companies) generally operate their businesses across the borders and have slowly achieved some power through which it is able to exert a worldwide influence (Bang, 2010).
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3It has been observed that these multi-national companies have a great impact on the lives of people and the communities where they are operating. Sometimes, there is a positive impact by the operations of these multi-national companies, but sometimes, there is an adverse effect of these operations on people and community. If we talk about the positive impact, then it can be measured in terms of creation of jobs in in the areas where these companies do their operations, the lives of the people is improved with the use of new technology and finally the investment in the community also provides for various benefits for the people living there. On the other hand, if we talk about the adverse impacts of the operations of these multi-national companies then it has been observed that with the increase in number of operations by these companies, there has been a negative impact on the environment, the climate of the area where they carry out their operations and which in turn impacts he health of the people and the overall community living nearby those areas. A number of legislations have been made at the domestic level in order to protect people, community and the environment as against the negative impacts of these operations by these multi-national companies engaged in the energy sector. But unfortunately, allthese domestic legislations have found to be weak and poorly enforced and it has been observed that there has been an increased exploitation of this weak and poorly enforced domestic regulation which has caused a devastating impact on people and communities.Issues in global energy sectorIf we talk about the global electricity sector, then it has been observed that there are mainly threemajor issues in it, which are namely; matching the supply with the increased demand, fighting against the change in climate, and the phase of massive urbanization. The demand in the global energy sector has been tremendously increases so the company needs to produce more in order to supply as per the demand that leads to emit huge harmful gases which disturbs the whole ecological balance of the universe so the global energy multinational companies needs to take various initiatives in order to protect the environment from harmful gases.The emission of harmful gases by the multinational company’s impact on the environment sp thecompanies need to fight against the change in climate. Another major problem is massive
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