What EY can do for you

Governments are increasingly using fiscal measures to achieve their environmental targets. Many countries now impose specific levies, duties or energy and environmental taxes to discourage undesirable behaviour and raise revenues, whilst also offering tax incentives to promote green transition.

Businesses need to factor the growing role of environmental taxes, resource efficiency and low-carbon activity incentives into their planning and modeling when making investment decisions.

Whilst many businesses are rapidly adapting their strategies to the development of carbon regimes, environmental taxes and sustainability incentives, their tax departments are often not included in these discussions. In addition, carbon regimes are relatively new and may not be seen as a tax function.

As energy and environmental taxes continue to increase in importance, our team is ready to help your business with the following:

Our multi-disciplinary approach to tax sustainability will deliver long-term value through:

• Reducing the cost of operations: The overall costs of operations can be reduced by ensuring energy and environmental taxes are managed, strategies are adapted and reliefs are identified and implemented.

• Improving the return on investment (ROI) of sustainability-related projects: By identifying and securing sustainability-related incentives and government funding, the ROI of projects from renewable energy investments to energy efficiency retrofits can be positively impacted.

• Mitigating risk: The threat of audit, penalties and reputational damage can be reduced by ensuring all compliance and reporting requirements are met.  

• Engagement with policymaking: Companies also want to understand how environmental taxes will develop and how they can communicate with policymakers so that they achieve the desired outcomes without causing undue complexity for businesses.