The problem with externalities is that they do not increase earnings or the tax base (taxable income)

There is going to be huge investment in the energy transition (green electricity generation, decarbonisation of industry, thermal renovation of buildings and housing). The point in common of these investments is that there are two components to their total return: a financial return and positive externalities (CO 2 emissions reduction). From the viewpoint of collective well-being, these investments must of course be made for the positive externalities they generate . But the problem must not be ignored: These externalities do not increase corporate earnings . F or a private company, making an investment that does not increase earnings is difficult to justify to shareholders and creditors; They do not increase the tax base (taxable income) . O f course , governments understand the need to make the investments that generate these positive externalities . B ut they also see that these investments will not increase tax revenues and are therefore difficult to finance through debt. If governments internalise the externalities for companies, the problem is then concentrated on governments, which will have to finance the cost of this internalisation through tax.