Amid a global push to move towards a greener economy, economists, environmentalists and also tax experts have joined the discussion on this transition. David Linke, KPMG's Global Head of Tax and Legal Services, shared his views with CNBC-TV18.

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In an interview, Linke spoke about the taxation policies, the pillars of G20 inclusive framework on base erosion and profit shifting, along with using taxation as a policy tool for the green transition.

Noting that protectionism is a "risk", Linke pointed out that during India's presidency of the G20, the incentivisation of the decarbonisation of the economy is a key focus. He added that he was involved in one of the working groups on the matter.

On the use of tax policy to achieve that goal, Linke brought up the European perspective. The European Union introduced a carbon border adjustment mechanism which seeks to tax high carbon intensive produced goods entering the EU.

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Comparing it to the Inflation Reduction Act of 2022 in the United States, which included almost $400 billion of incentives to decarbonise its economy, Linke pointed out that the EU's taxation policy approach was to drive producer decarbonisation.

"So I think tax incentives and tax policy, albeit in two different approaches, are really used in particular by the EU but now by the US as well," Linke said.

A global minimum corporate tax rate, which has been proposed by Pillar Two of BEPS, has historically been an important issue in the EU, Linke told CNBC-TV18. India already has a concept of minimum alternate tax of 15 percent.

"I think India's well positioned already given the minimum tax rate, but I think there's a number of issues associated with the global minimum tax that countries are grappling with. Not solely an Indian issue," Linke said.

Linke brought up concerns surrounding the treatment of incentives, tax holidays and special economic zones when deciding a global minimum corporate tax rate.

On Pillar One regarding base erosion, Linke said he was still "optimistic" about countries reaching an agreement on the matter.

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"I think there will be a resolution and I'm confident there will be, it may just take a little longer," Linke said. He added that India led the thinking with its market-based approach on taxing the profits made from the ultimate consumer.

"I think this move away from seeking an existing physical presence in a country is a thing that will go by the wayside in global tax terms. I think the Indians moved quickly on their equalization levy," Linke said, citing India's concept of a "significant economic presence" which doesn't require on-ground people to generate presence.

He added that people will see more of that going forward.