Abstract
<jats:p>Abstract This study examines the effect of environmental tax incentives on green investment in multinational companies in Indonesia during the 2021–2023 period. The background of the research is driven by the growing global urgency to address the climate crisis, which has encouraged many countries, including Indonesia, to adopt sustainable fiscal policies. The research variables consist of the independent variable, namely environmental tax incentives, and the dependent variable, namely green investment. A quantitative approach is employed using secondary data obtained from the reports of multinational companies listed on the Indonesia Stock Exchange, resulting in 354 observations. Panel data regression analysis is applied to assess the effect of tax incentives on green investment, complemented by robustness and endogeneity tests to ensure the validity of the results. The findings indicate that environmental tax incentives have a positive effect on green investment. This provides empirical evidence that tax incentives can serve as an effective policy instrument to encourage private sector participation in the sustainable development agenda. The practical implication emphasizes the importance of refining tax incentive policies to strengthen the environmental commitment of multinational companies operating in Indonesia.</jats:p>