3. The impact of ETS and carbon taxes on Japanese local subsidiaries.
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In the state of Aguascalientes, where our Mexican subsidiary is located, there are currently no ETS (Emission Trading System) or carbon tax in place.
However, when implementing such measures, it is necessary to impose emission responsibilities on companies while also encouraging the reduction of carbon emissions without significantly impacting business operations. Therefore, extensive analysis is considered necessary to establish evidence-based pricing.
In regions where such measures have already been implemented, tax incentives have been provided, so it cannot be said that there are universally negative impacts.
However, from the perspective of companies, the differing responses to regulations across states make it difficult to gather information. According to local businesses, they plan to respond flexibly while closely monitoring the situation moving forward.
On the other hand, according to the tax authorities' viewpoint, as reported by local newspapers, there are challenges associated with legally imposing emission responsibilities on companies.
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In the state of Aguascalientes, where our Mexican subsidiary is located, there are currently no ETS (Emissions Trading System) or carbon taxes in place.
However, when implementing such measures, it is necessary to impose emission responsibilities on companies while also encouraging the reduction of carbon emissions without significantly impacting business operations. Therefore, extensive analysis is considered essential for evidence-based pricing.
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