Government Finance Policies

🔧 𝘽𝙚𝙮𝙤𝙣𝙙 𝙉𝙚𝙤𝙡𝙞𝙗𝙚𝙧𝙖𝙡𝙞𝙨𝙢 — 𝘼 𝙉𝙚𝙬 𝙄𝙣𝙙𝙪𝙨𝙩𝙧𝙞𝙖𝙡 & 𝙎𝙤𝙘𝙞𝙖𝙡 𝘾𝙤𝙢𝙥𝙖𝙘𝙩 𝙛𝙤𝙧 𝙀𝙪𝙧𝙤𝙥𝙚 The era of neoliberalism is cracking. What’s rising in its place? 👉 Industrial policy is back. But not the old kind. This is 𝙥𝙤𝙨𝙩-𝙣𝙚𝙤𝙡𝙞𝙗𝙚𝙧𝙖𝙡, strategic, state-led. Across the West, governments are reshoring supply chains, investing in chips and clean tech, reasserting control. 🔗 https://lnkd.in/efDnH3ZC A pragmatic shift from markets to missions. But, 𝘢𝘯𝘥 𝘵𝘩𝘪𝘴 𝘳𝘦𝘢𝘭𝘭𝘺 𝘮𝘢𝘵𝘵𝘦𝘳𝘴, more state doesn’t automatically mean more justice. ⚠️ Without rebalancing power structures, state activism can simply reinforce them: 👥 more clientelism 💼 more oligarchs 👓 more tech bros deciding the future This is the real tension: Industrial policy without democratic transformation risks becoming industrial feudalism. To unite societies, resist autocracy, and build shared legitimacy, we need more than industrial ambition. We need 𝙧𝙖𝙙𝙞𝙘𝙖𝙡 𝙨𝙤𝙘𝙞𝙖𝙡 𝙥𝙤𝙡𝙞𝙘𝙞𝙚𝙨 that empower and not just subsidize: ✔️ Universal basic income ✔️ Wealth taxation ✔️ Participatory democracy ✔️ A new ethic of fairness 👉 https://lnkd.in/eygF7yzj Because inequality isn’t just unjust. It’s unstable. It feeds cynicism, fuels populism, and opens doors to authoritarianism. 🎯 𝙏𝙝𝙚 𝙣𝙚𝙬 𝙛𝙧𝙖𝙢𝙚 𝙧𝙚𝙦𝙪𝙞𝙧𝙚𝙨 𝙗𝙤𝙩𝙝: 🔩 Industrial Policy 🟰 Tech sovereignty, green investment, strategic coordination ❤️ Social & Democratic Policy 🟰Redistribution, trust-building, citizen agency We’ve normalised strategic statehood in the economy. Now we must normalise social counterpower to hold that state accountable. 💡 𝙄𝙣𝙙𝙪𝙨𝙩𝙧𝙞𝙖𝙡 𝙥𝙤𝙡𝙞𝙘𝙮 𝙖𝙛𝙩𝙚𝙧 𝙣𝙚𝙤𝙡𝙞𝙗𝙚𝙧𝙖𝙡𝙞𝙨𝙢 𝙞𝙨 𝙙𝙞𝙛𝙛𝙚𝙧𝙚𝙣𝙩, but without democratic depth and social fairness, it’s just scaffolding for the next elite.

The Pentagon is going long on miners. The #Trump administration has instructed the #DepartmentofWar to take a 10% stake in Trilogy Metals Inc. and to help fund South32’s Arctic copper and zinc project in Alaska. This follows a 5% equity position in Lithium Americas Corp. earlier this month. Alongside that, the #Pentagon and the U.S. Department of Energy (DOE) have deployed billions across #NorthAmerican projects including MP Materials, Graphite One Inc., Electra Battery Materials Corporation, Lynas Rare Earths Ltd and Perpetua Resources. #Washington is no longer acting as a passive supporter. It is behaving like a strategic investor, using equity, grants and loans to secure the metals it needs for defence and industry. While #Canada is taking a more cautious path, offering grants and fast-track approvals but stopping short of direct ownership. The real question is whether we are entering an era where mineral financing becomes an instrument of state policy. When the government starts taking equity, the market stops being neutral. #US #criticalminerals #mining

Summary: Global Adoption of Sustainability Disclosure Frameworks (as of June 2025) Governments around the world are increasingly aligning with either the ISSB Standards (IFRS S1 & S2) or the EU’s ESRS under the CSRD. The IFRS Foundation has published jurisdictional profiles for over 50 countries, showing varied stages of adoption. I made a map to show the adaptation of respectively IFRS Snapshots, IFRS Profiles and ESRS: 🟥 IFRS Profiles: Countries like Australia, Brazil, Mexico, India, and South Africa are actively adopting or aligning with ISSB standards through regulatory action. 🟦 IFRS Snapshots: Nations including Canada, China, Japan, and Indonesia are at an earlier stage, allowing voluntary use or assessing the standards for future regulation. 🟨 ESRS Mandatory Transposition: All EU and EEA countries are legally required to implement the ESRS under the CSRD, establishing comprehensive ESG reporting rules starting from 2024. The combined map and IFRS update show growing international convergence toward consistent, comparable sustainability disclosures, with the ISSB providing a global baseline and the ESRS setting a stricter EU benchmark.

𝐊𝐄𝐑𝐀𝐋𝐀 𝐑𝐄𝐖𝐑𝐈𝐓𝐄𝐒 𝐓𝐇𝐄 𝐄𝐒𝐆 𝐏𝐋𝐀𝐘𝐁𝐎𝐎𝐊: 𝐍𝐎𝐖 𝐈𝐍𝐃𝐈𝐀’𝐒 𝐅𝐈𝐑𝐒𝐓 𝐒𝐓𝐀𝐓𝐄 𝐖𝐈𝐓𝐇 𝐀 𝐅𝐎𝐑𝐌𝐀𝐋 𝐄𝐒𝐆 𝐏𝐎𝐋𝐈𝐂𝐘 Kerala has crossed a major milestone - its Cabinet has approved India’s first state-level ESG (Environmental, Social, Governance) investment policy, transitioning from aspiration to action. This strategic move signals Kerala’s intent to become a model jurisdiction for sustainable, responsible growth — providing clarity for investors, discipline for corporates, and incentives for ethical innovation. 𝗞𝗲𝘆 𝗙𝗲𝗮𝘁𝘂𝗿𝗲𝘀 & 𝗜𝗻𝗰𝗲𝗻𝘁𝗶𝘃𝗲𝘀: - 100% capital investment reimbursement for 5 years for ESG-aligned projects - 10% subsidy on fixed capital investment (up to ₹50 lakh) - Low-interest financing via Kerala State Industrial Development Corporation (i.e., KSIDC) (nodal agency) for green tech and machinery - 20% procurement preference for ESG-compliant local businesses - Sustainability targets: 100% renewable energy by 2040; carbon neutrality by 2050 - Mandatory ESG reporting under different frameworks such as BRSR (India), GRI, SASB, and TCFD (global) standards - ESG ratings & recognition by SEBI-regulated providers - Digital ESG e-portal for transparency and branding Kerala as an “ESG State” - Implementation term: 5 years (till 2030) led by KSIDC By embedding ESG incentives, accountability, and disclosure standards into its industrial framework, Kerala has transformed voluntary ESG adoption into an enforceable, incentive-backed governance model. 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆𝘀 𝗳𝗼𝗿 𝗘𝗦𝗚-𝗗𝗿𝗶𝘃𝗲𝗻 𝗘𝗻𝘁𝗲𝗿𝗽𝗿𝗶𝘀𝗲𝘀: For Corporates & Industry Leaders - Kerala’s ESG policy raises the compliance baseline. In other words, sustainability, governance, and disclosure are now integral to business viability. Early movers stand to benefit from procurement preference, concessional financing, and reputational leadership. For Startups & MSMEs - ESG is being democratized. Entrepreneurs can now integrate ESG from inception and access capital, incubation, and policy support for innovation in clean tech, waste, and circular economy sectors. For Global & Domestic Investors - Transparent ESG standards, aligned reporting frameworks, and measurable targets reduce jurisdictional and regulatory risk, making Kerala a predictable and attractive ESG investment destination. Kerala’s ESG policy is more than a policy milestone, it is a structural shift in how growth is defined and governed. By embedding sustainability, social accountability, and ethical governance into the legal fabric of industrial development, Kerala has redefined compliance as a catalyst for competitiveness. It sets a national benchmark, proving that responsible growth is not a compromise, it’s the new competitive advantage! ANB Legal I Samik Shah #ESG #Sustainability #Kerala  #ESGLeadership

Sustainability Policy and Market Tools 🌍 Policy measures and market frameworks are essential to translate sustainability goals into tangible progress. They provide the structure businesses need to align with evolving expectations. Carbon pricing and caps attach a financial cost to emissions. This mechanism encourages companies to reduce their footprint and invest in low-carbon solutions. Disclosure and reporting mandates improve transparency. Standardized ESG and climate information makes it possible to evaluate risks, performance, and strategy across industries. Supply chain due diligence extends responsibility across value chains. Companies are expected to identify and address environmental and social impacts linked to their operations. Product and performance standards reshape industries. Rules on durability, recyclability, and efficiency drive innovation and reduce negative impacts throughout the lifecycle. Classification and labels create clarity in the market. Taxonomies and eco-labels define what qualifies as sustainable, directing both capital and consumer demand. Sustainable finance rules guide the flow of investment. Green bonds, loans, and stewardship frameworks ensure capital supports credible and impactful projects. Incentives and public procurement generate demand. Subsidies, credits, and government purchasing help sustainable solutions achieve scale. Market integrity and assurance protect credibility. Independent audits, penalties, and claim controls strengthen trust in sustainability data. Individually, each of these measures matters. Together, they reinforce one another and accelerate systemic change. For companies, aligning with these policies is now a requirement for access to markets, capital, and long-term competitiveness. Sustainability advances when rules and incentives create a level playing field that rewards meaningful action and discourages greenwashing. #sustainability #business #sustainable #esg

Tax incentives are a powerful but double‑edged policy tool.   Used well, they can support investment, competitiveness and development goals. Used poorly, they risk high fiscal costs, economic distortions and growing tax system complexity, without delivering real impact.   That is why value for money matters. Especially in developing and emerging economies, where attracting investment must go hand in hand with mobilising domestic revenue.   A new OECD practical guide takes a clear, evidence‑based approach to this challenge. Rather than revisiting first principles, it focuses on actionable steps across the full tax incentive lifecycle - from conception and design to implementation, monitoring, evaluation and reform. Importantly, it recognises real‑world constraints and offers practical tools for policymakers working with limited resources.   The guide builds on: ▪️ The OECD Investment Tax Incentives Database ▪️ The Platform for Collaboration on Tax (PCT) Tax Incentives Principles ▪️ Extensive engagement with policymakers, experts and practitioners across regions   Its core message is simple: better tax incentives are possible, but they require stronger evidence, clearer objectives and continuous review.   Thank you to Carmine Di Noia and his team for the excellent collaboration on this project which we will be a valuable resource for governments seeking to strike the right balance in supporting productive investment while limiting fiscal costs and economic distortions.   Access the report ➡ https://lnkd.in/eHtprbzH #TaxPolicy #Investment #TaxIncentives #Development #OECD OECD Tax OECD Business and Finance

🌍 Accelerating Industry Decarbonization: Collaboration Is the Key The World Economic Forum's latest report, United for Net Zero: Public-Private Collaboration to Accelerate Industry Decarbonization, outlines a roadmap for tackling industrial emissions, which account for 30% of global greenhouse gases. The report highlights the urgent need for collaboration between governments and businesses to overcome barriers like insufficient funding, regulatory fragmentation, and slow technology adoption. 8 key opportunities to accelerate progress: ✨ Understand and leverage public financial mechanisms: Governments must provide tailored incentives like tax breaks and subsidies to make decarbonization projects financially viable. ✨ Engage your sector to co-develop financial mechanisms: Industries should work with stakeholders to design financing models that align with sectoral needs and drive innovation. ✨ Facilitate carbon tracking adoption within your value chain: Promoting standardized carbon measurement tools and tracking systems can improve transparency and drive efficiency. ✨ Contribute to harmonizing carbon accounting standards: Aligning global standards for carbon reporting will reduce costs and improve accountability. ✨ Proactively support net-zero solutions across value chains: Companies must help decarbonize supply chains, particularly by supporting SMEs with knowledge and funding. ✨ Collaborate with governments on value chain decarbonization policies: Businesses should actively shape policies that accelerate emissions reduction while ensuring fairness. ✨ Co-invest in climate technologies and market creation: Joint investment in technologies like green hydrogen and renewables will be key to achieving net-zero goals. ✨ Help create enabling policies for climate technology adoption: Governments and industries must design policies that reduce risks and boost demand for climate innovations. 🌱 My Reflections 💭 1. Mobilizing Consumer Influence Consumers hold untapped power to drive change. A globally recognized "carbon-neutral certified" label could transform purchasing habits. Transparent certifications and awareness campaigns could accelerate demand for sustainable products. 💭 2. Ensuring Equity Across Borders Global supply chains must help developing economies transition fairly. Capacity-building, knowledge-sharing, and financial support can ensure all regions—not just wealthy ones—meet net-zero goals. 💭 3. Fast-Tracking Green Innovation Regulatory bottlenecks remain a major hurdle. An international fast-track mechanism for green projects could streamline approvals and accelerate innovations like green hydrogen and carbon capture technologies. The challenge is immense, but so are the opportunities. What do you see as the most critical steps toward net-zero industries? 🌟 #NetZero #Sustainability #ClimateAction #Decarbonization #Innovation #Collaboration

I think these type of arguments can be quite dangerous for bond investors. The structural demographic argument in this article is intellectually interesting. But I think this kind of analysis is dangerously complacent about the immediate risks facing bond investors. I really feel very strongly about this. I have nothing against the author, but this is not the correct approach to risk management in fixed income right now. Inflation and fiscal concerns outweigh long-term pension demand shifts at this point in time. Demographics don’t explain the 30-year’s lurch from ~3.5% to ~5%. I accept there was a technical 10s–30s steepening, visible in swaps, with long-run inflation expectations broadly stable. That’s market microstructure. It doesn’t lessen the macro risks that determine P&L over the next 12–24 months: inflation re-acceleration, a wall of issuance and policy uncertainty. In fixed income, you manage the risks you actually face, not the ones you prefer to believe in. Just as a high-yield manager must prioritise credit risk over duration risk, Treasury investors today must focus on the near-term threats: potential inflation re-acceleration, $3–4 trillion in additional deficits and Fed policy uncertainty. On the idea that investors who want to trade fiscal stress should use currencies or gold, this may suit macro traders, but a fixed-income PM cannot simply rotate into gold or FX (well they can but that is a different skillset). They have to manage duration and inflation within their mandate, where the risk shows up directly in the bond book. The demographic story might explain why yields are modestly higher than they otherwise would be, but suggesting investors downplay fiscal sustainability concerns while government debt/GDP heads to record highs is like telling a ship’s captain to focus on routine maintenance while ignoring storm warnings. Any institutional bond manager right now is stress-testing for inflation scenarios and hedging duration risk, not primarily studying pension allocation models. This perspective risks leaving investors seriously unprepared for the magnitude of losses if inflation or fiscal concerns materialise. I respect that this is coming from the angle of a global macro investor and I respect this view. But from a fixed income perspective, downplaying very real short-term risk factors, is well... risky.

India's target of 500 GW of renewable energy by 2030 is ambitious, but achieving it requires decisive policy reforms. Stronger Renewable Portfolio Standards (RPS) are a must, mandating power companies to source more energy from renewables, with clear deadlines in place. ⚡ To accelerate adoption, India needs: • Financial incentives – Subsidies for rooftop solar, generation-based incentives (GBIs), and low-interest loans for projects. • A modernized power grid – #GreenEnergy Corridors for solar and wind integration, plus smart tech upgrades to handle fluctuating supply. • Expanded PLI schemes – Boosting domestic manufacturing of solar panels, wind turbines, batteries, and other key components. • Support for energy storage innovation – R&D funding and incentives for large-scale #batterysolutions. Simplifying approvals through single-window clearance systems and running public awareness campaigns can also help drive adoption. India is at a crucial juncture. With the right policies and swift action, we can lead the global renewable energy revolution and create a sustainable future for generations to come. #RenewableEnergy #SustainableIndia #EnergyPolicy

🌍 𝗧𝗵𝗲 𝗠𝗶𝘀𝘀𝗶𝗻𝗴 𝟮 𝗕𝗶𝗹𝗹𝗶𝗼𝗻: 𝗠𝗮𝗸𝗲 𝗦𝗼𝗰𝗶𝗮𝗹 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝘆 𝗧𝗿𝘂𝗹𝘆 𝗜𝗻𝗰𝗹𝘂𝘀𝗶𝘃𝗲 𝗶𝗻 𝗮𝗻 𝗔𝗴𝗲 𝗼𝗳 𝗨𝗻𝗰𝗲𝗿𝘁𝗮𝗶𝗻𝘁𝘆! Despite notable progress, 2 billion people in low- & middle-income countries remain uncovered or inadequately covered by social protection systems, as highlighted in the World Bank’s State of Social Protection Report 2025. While social protection coverage has expanded to over 4.7 billion globally, it often remains: 📌 Too little (low benefit adequacy), 📌 Too late (limited crisis responsiveness), 📌 Too narrow (missing informal, migrant, & female workers). In low-income countries, social assistance contributes just 11% to poor households’ incomes - barely enough to cushion basic shocks. At current pace, it’ll take two decades to cover the bottom 20% of populations. Yet, countries like India are rewriting the script - one policy at a time. 🇮🇳 India’s approach blends universal schemes, digital infrastructure, & state-level innovations: 📍e-Shram (eshram.gov.in): national database for 280m+ unorganized workers 📍Ayushman Bharat: ₹5 lakh health insurance for 50 crore people 📍EPFO & ESIC: institutionalized security for formal workers 📍National Pension Scheme: voluntary retirement planning 📍PM-KISAN, Atal Pension Yojana, Ladli Behna Yojana, & other DBT schemes providing income support to farmers, women, elderly, & gig workers 📍Cross-subsidies like free electricity for agriculture & small households, zero-fare public transport for women, and state-sponsored healthcare/education These financial interventions are instruments of dignity, aimed at reducing exclusion, especially for women, the elderly, and informal workers. But there's another silent shift we must acknowledge: the fracturing of joint families into nuclear units. 👪 Traditionally, Indian households relied on extended family systems to shoulder care responsibilities and income shocks. Today, urbanization, migration, and shrinking households have eroded these informal safety nets. This isn’t just about affordability - it’s about the viability of social protection in a rapidly changing value system. As family support structures weaken, the state must step in as the default caregiver - with systems that not only offer financial support but also foster care, community, and continuity. The World Bank outlines four pathways forward: 1️⃣ Expand coverage - especially for the informal and invisible 2️⃣ Enhance adequacy - benefits must empower, not just alleviate 3️⃣ Build adaptive systems - to withstand crises and transitions 4️⃣ Reform financing - from regressive subsidies to targeted, equity-focused transfers 🔁 Social protection must be a pre-emptive platform for resilience. In an age of climate risks, tech disruption, geo-political conflicts, and demographic shifts, it’s time to evolve our systems from safety nets to springboards. Because security isn't just about schemes - it's about the society we choose to build.