Using tax to tilt the playing field towards a greener and more inclusive economy

Building on the work developed by the Biscay Fiscal (Tax) Policy and the SDGs project, Prof Mariana Mazzucato and Dr Kate Roll discuss with the Biscay Government the project’s findings and the role of regional fiscal policy in providing directionality and shape markets.  

Prof Mariana Mazzucato, Founding Director of UCL IIPP, and Dr Kate Roll, Assistant Professor in innovation, Development and Purpose at UCL IIPP, and authors of The Biscay Model policy report, will be in Bilbao Monday 27th June to present the report at the Market Shaping by Tilting the Playing Field: aligning tax policy and investments around the SDGs conference. The conference is organized by the Government of Biscay and will be opened by the Governor of Biscay, Unai Rementeria. 

The report is a major output of the Biscay Fiscal (Tax) Policy and the SDGs project; a research collaboration designing fiscal policy around the SDGs between IIPP and the Biscay Government, based in Bilbao, Spain. 

How can taxation and other fiscal policy tools help advance the United Nations Sustainable Development Goals (SDGs)? The partnership with the Biscay regional tax team to explore this question resulted in the development of a composite index tool, the Biscay Model, which enables authorities to measure corporate SDG performance in priority areas in order to link it to tax incentives. Such work has the potential to help regions and states better address the climate emergency and pursue the SDGs.

As IIPP Director, Mariana Mazzucato highlights:

“While much of the interest in the intersection of SDGs and tax has been around raising sufficient revenue, the partnership between the UCL Institute of Innovation and Public Purpose and the Biscay government has brought a deeper and incisive question to the fore: How can we use tax to tilt the playing field towards a greener and more inclusive economy?”

Head of Teaching, Dr Kate Roll also notes:

“We have been delighted to collaborate with the government in Biscay, particularly the tax team, on this work. We have the exciting opportunity to broaden our thinking around tax, measurement and the SDGs.”

IIPP also recently launched a four-episode series of animated videos which bring to life this research collaboration. Using a journey-style narrative, the videos showcase how the Biscay Model has been envisaged to work in practice as well as the different, more proactive approaches governments can take in order to achieve the UN SDGs and facilitate the shift to a greener, fairer and more inclusive economy. 

Further information:

• The Biscay Model: Aligning tax policy with the United Nations sustainable development goal
• Watch The Biscay Model animation series
• View The Biscay Model concept note
• View The Biscay Model executive summary
• View the conference here