EY Green Tax Tracker 1 April 2022

Page created by Hazel Dean
 
CONTINUE READING
EY Green Tax Tracker 1 April 2022
EY Green Tax Tracker

1 April 2022
EY Green Tax Tracker 1 April 2022
Keeping pace with sustainability incentives,
carbon regimes and environmental taxes
Governments around the world are using sustainability
tax measures to reduce emissions, meet their
commitments on carbon neutrality and tackle climate
change, as well as to raise revenue and fund important
policy objectives. While these goals are shared, the                      Policy
                                                                         monitoring        ESG
policies established to achieve them vary greatly.                                     Quantification
                                                                           and
                                                                         modeling
For businesses that wish to take action on climate
change, secure valuable incentives to enable these           Planning,
                                                             Reporting
actions and avoid costly surprises, staying on top of the       and                                 Fund
evolving sustainability tax landscape across the globe is   Compliance                           Management
critical. However, staying current as policies rapidly
evolve can be a challenge, especially for global                              Sustainability
businesses.                                                 Sustainability
                                                                                                         Credits,
                                                                                                        Incentives
                                                                Law
                                                                                                       and Funding
Here EY Teams offer a snapshot of sustainability
incentives, carbon regimes, environmental taxes and
environmental tax exemptions present in 45                                                  ESG
                                                                        Supply Chain         +
jurisdictions. To learn more about any measure, please                                 International
                                                                        Optimization
consult with your EY engagement team or the                                                Trade
jurisdiction contact located at the top of each page.

Page 2                        EY Green Tax Tracker
EY Insights
►   Why tax and finance functions must pay heed to plastic taxes. With the world facing a huge plastic pollution problem, governments are introducing
    new measures to curb it. One key method is the plastics tax, which is being applied by different jurisdictions at different rates, in a range of ways. It’s a
    fast-moving picture, and tax teams face a challenge keeping up. But those who can, will have an opportunity to be a strategic partner to the business: to
    help it avoid risk, seize new incentives, and align with changing consumer and investor tastes.

►   Why Eastern Europe is stepping up a gear in the drive for net zero. The countries and regions in Eastern Europe are coming under ever-greater
    pressure to increase their mix of renewables and ensure the EU deadline of carbon neutrality by 2050 is not missed. Each area is navigating its own
    particular economic, social and political challenges to a green future, with distribution networks being upgraded, technology developed and financial
    instruments designed to support their transition to low-carbon economies.

►   How you can reframe operations for resilience and sustainability. The route to building resilient and sustainable operations is complex and often
    compounded by disruptions over which chief operating officers have no control – geopolitics, civil unrest, techno nationalism and an evolving multipolar
    economic world order. But overcoming these challenges, and positioning the business to achieve more sustainable and purpose-driven growth, will
    require visibility, agility, technology innovation, cybersecurity and upskilling the workforce.

►   How supply chains can be more resilient, sustainable and transparent. In the wake of the pandemic, supply chain leaders need to place priority on
    resiliency and agility, sustainability, and traceability. Luckily, these issues are interdependent. Leaders should focus on these questions: can you see
    through the whole of the supply throughout your tiers, and can you adapt when the inevitable disruption starts to shake your supply chain?

►   Why consumers may hold the key to the energy transition. Once alternative energy becomes competitive with fossil fuels on a large scale in terms of
    cost and performance, the timing of the energy transition will be a matter of consumer preference. That is the theme of The long goodbye. In this
    scenario, consumers call the tune. Once consumer preferences shift significantly, the energy transition happens.

►   Three dynamics to watch on global climate disclosure standards. With momentum building for a long-elusive global baseline standard on climate
    disclosures, the private sector should build institutional capacity today and understand both that mandatory reporting is on its way and that these
    standards will be just one part of the policy changes needed to fight climate change.

Page 3                            EY Green Tax Tracker
45 Jurisdictions covered
Argentina                               Ireland            Slovakia*
Australia                               Italy              South Africa
Austria                                 Japan              South Korea
Belgium                                 Lithuania          Spain
Brazil                                  Luxembourg*        Switzerland
Canada                                  Malaysia           Taiwan
China Mainland                          Mexico             Thailand*
Colombia                                The Netherlands    Turkey
Cyprus                                  New Zealand        United Kingdom
Denmark                                 Norway*            United States
European Union                          Peru               Vietnam
Finland                                 The Philippines*
                                                           The information offered for each jurisdiction represents
France                                  Poland             the best understanding of EY professionals in that
Germany                                 Portugal           jurisdiction. It is high-level and subject to change. This
                                                           document is updated on an ongoing basis but not all
Hong Kong                               Romania            entries will be up to date at a given moment. In
                                                           addition, not all jurisdictions are reflected in this
India                                   Russia             document. Please contact your EY engagement team or
Indonesia                               Singapore          the listed jurisdiction contact for more information.
                                                           * New in this edition

Page 4           EY Green Tax Tracker
Page 5
                                                                                                                                         Brazil

                                             France
                                                                                           Cyprus
                                                                                                                                                            Austria

                                                      Finland
                                                                                                                                Canada
                                                                                                                                                  Belgium

                                                                                 Denmark

                                   Germany
                                                                                                                                                                      Australia

                                                                                                    Colombia
                                                                                                                                                                                  Argentina

                       Hong Kong
                                                                                                                                                                                                for more details.

                                                                                                               China Mainland

                                                                European Union
                                                                                                                                                                                                an item at the jurisdictional or local
                                                                                                                                                                                                Note: An X indicates the presence of

                                                                                                                                                                                                level, please see the jurisdiction page
                                                                                                                                                                                              ETS implemented

                       x
                       x
                       x
                       x
                       x
                       x
                       x
                       x

                       x
                                                                                                                                                                                              ETS under construction
                                                                                                                                                                                                                                                                                                                                                              Index of measures

                       xx
                       xx

EY Green Tax Tracker
                                                                                                                                                                                              Carbon tax implemented

                          x
                       xxx
                          x
                          x
                                                                                                                                                                                  x

                          x
                                                                                                                                                                                                                                                Carbon pricing

                                                                                                                                                                                              Carbon tax under consideration

                                                                                                                                                                                              Energy efficient buildings

                                                                                                                                                                                              Energy efficient process equip.

                              x
                              x
                                                                                                                                                                                                                                                                                                    Find the most current version of this tracker on ey.com

                                                                                                                                                                                              Water use reduction
                                                                                                                                                                                              technologies
                                                                                                                                                                                                                                          Reduce

                                                                                                                                                                                              Waste reduction/recycling tech.

                                                                                                                                                                                              Emission reduction technologies

                             xxxxx
                            xxxxxx

                                                                                                                                                                                              Alt fuel – vehicles/infrastructure

                                   x
                                xxx
                                 xx
                                xxx
                             xxxxxx

                                                                                                                                                                                              Hydrogen-based fuels
                                                                                                                                                                                                                                          Switch

                                                                                                                                                                                              On-site generation

                                                                                                                                                                                              Renewable energy generation
                                      x
                                     xx
                                     xx
                                   xxxx

                                                                                                                                                                                              Recycled materials/recycling
                                                                                                                                                                                                                                                               Sustainability incentives

                                                                                                                                                                                              equipment
                             xxxxxxxxxx

                                                                                                                                                                                              R&D machinery for
                                                                                                                                                                                              manufacturing "green" products
                                        x
                                     xxxx
                                        x

                                                                                                                                                                                              Carbon capture technologies
                                        xx
                                          x
                                     xxxxx
                             xxxxxxxxxxxx

                                          x
                                                                                                                                                                                                                                          Innovate

                                                                                                                                                                                              Green jobs/training

                                                                                                                                                                                              Plastics and packaging
                             xxxxxxxxxxxxxx
                             xxxxxxxxxxxxxx

                                                                                                                                                                                              Water consumption, pollution
                                                                                                                                                                                              and effluent charges
                                            x

                                                                                                                                                                                              Recycling, waste and landfills
                                            xx
                                            xx
                                            xx
                                            xx
                                            xx
                                            xx
                                              x

                                                                                                                                                                                              Electronic waste
                             xxxxxxxxxxxxxxxxx

                                                                                                                                                                                              Emissions and air pollution

                                                                                                                                                                                              Conventional and alternative
                                                                                                                                                                                              fuels
                                                 x
                                            xxxxx
                                                xx
                                                 x

                                                                                                                                                                                              Energy/electricity generation,
                                                                                                                                                                                              distribution and consumption
                                                   x
                                                xxx
                                                                                                                                                                                                                                                Environmental taxes

                                                                                                                                                                                              Industrial and manufacturing
                                                                                                                                                                                              processes
                                                xxxx

                                                xxxx

                                                                                                                                                                                              Plastics and packaging
                                                      x
                                                xxxxx
                                                      x

                            xxxxxxxxxxxxxxxxxxxxxxx
                                                      x

                                                                                                                                                                                              Water use reduction and thermal
                                                                                                                                                                                              energy production
                                                 xxxxx

                                                                                                                                                                                              Waste reduction/recycling
                             xxxxxxxxxxxxxxxxxxxxxxxx
                                                      xxx
                                                xxxxxxx
                                                         x

                                                                                                                                                                                              Electronic waste

                                                                                                                                                                                              Emission reduction
                                                           x
                                                           x

                                                                                                                                                                                              Conventional and alternative
                                                                                                                                                                                              fuel
                                                             x
                                                           xx
                                                     xxxxxxx
                                                             x
                                                             x

                                                                                                                                                                                              On-site generation
                                                             xx

                                                                                                                                                                                              Renewable energy
                                                        xxxxxxx
                                                                x

                                                               xx
                                                           xxxx

                                                                                                                                                                                              Conventional generation
                                                                  x
                                                                                                                                                                                                                                                Environmental tax exemptions

                                                                                                                                                                                              Energy efficiency, industrial and
                                                                                                                                                                                              manufacturing processes
                                                           xxxxxx
                                                               xxxx
                                                                    x
                                                             xxxxx

                                                                    x
                                                                    x
                                                                    x
                                                                                                                                                                                                                                                                                           Return to jurisdiction list

                                                                                                                                                                                              Plastics and packaging
                                                                xxxx
                                                        xxxxxxxxxx
Italy

Page 6
                                                  Peru
                                                                                                                                                                                     India

                                                                                                                                               Japan

                                         Poland
                                                                                                                                                               Ireland

                                                                                                  Mexico

                                                         Norway
                                                                                                           Malaysia
                                                                                                                                   Lithuania
                                                                                                                                                                         Indonesia

                                                                                                                      Luxembourg
                                                                                                                                                                                                 for more details.

                                                                  New Zealand

                       The Philippines
                                                                                The Netherlands
                                                                                                                                                                                                 an item at the jurisdictional or local
                                                                                                                                                                                                 Note: An X indicates the presence of

                                                                                                                                                                                                 level, please see the jurisdiction page
                                                                                                                                                                                             ETS implemented

                       x
                       x
                       x
                       x
                       x
                       x
                       x
                                                                                                                                                                                             ETS under construction

                         x

EY Green Tax Tracker
                                                                                                                                                                                             Carbon tax implemented

                           x
                           x
                           x
                           x
                       xxx
                           x
                         xx
                                                                                                                                                                                                                                                 Carbon pricing

                                                                                                                                                                                             Carbon tax under consideration

                                                                                                                                                                                             Energy efficient buildings
                                                                                                                                                                                                                                                                                                                                                               Index of measures (continued)

                              x
                                                                                                                                                                                             Energy efficient process equip.

                                x
                              xx
                                                                                                                                                                                     x

                                x
                                                                                                                                                                                                                                                                                                     Find the most current version of this tracker on ey.com

                                                                                                                                                                                             Water use reduction technologies
                                                                                                                                                                                                                                           Reduce

                                                                                                                                                                                             Waste reduction/recycling tech.
                                   x

                                                                                                                                                                                             Emission reduction technologies

                                  xxx
                                     x
                                   xx

                                                                                                                                                                                             Alt fuel – vehicles/infrastructure

                              xxxxxx
                                       x
                                   xxx
                                     xx

                                     xx
                                                                                                                                                                                             Hydrogen-based fuels
                             xxxxxxxx
                                  xxxxx
                                                                                                                                                                                                                                           Switch

                                                                                                                                                                                             On-site generation
                                          x

                                                                                                                                                                                             Renewable energy generation

                                          xx
                                            x
                                            x

                                            x
                                                                                                                                                                                             Recycled materials/recycling
                                                                                                                                                                                                                                                                Sustainability incentives

                                                                                                                                                                                             equipment
                                            xx
                                            xx
                                         xxxx

                                                                                                                                                                                             R&D machinery for manufacturing
                                                                                                                                                                                             "green" products
                                               x
                                              xx

                                                                                                                                                                                             Carbon capture technologies
                                                 x
                                               xx
                                               xx

                           xxxxxxxxxxxxxx
                                                                                                                                                                                                                                           Innovate

                                                                                                                                                                                             Green jobs/training

                                                                                                                                                                                             Plastics and packaging
                              xxxxxxxxxxxxxx
                              xxxxxxxxxxxxxx

                                                                                                                                                                                             Water consumption, pollution and
                                                                                                                                                                                             effluent charges
                                                   xx

                                                                                                                                                                                             Recycling, waste and landfills
                                                   xxx
                                                      x
                                                    xx
                                                      x

                                                   xxx

                                                                                                                                                                                             Electronic waste

                                                                                                                                                                                             Emissions and air pollution
                                                    xxxx
                                                    xxxx

                                                        x

                                                                                                                                                                                             Conventional and alternative fuels
                                                          x

                                                                                                                                                                                             Energy/electricity generation,
                                                                                                                                                                                             distribution and consumption
                                                   xxxxxxx
                                                            x
                                                        xxx
                                                            x

                                                            x
                                                                                                                                                                                                                                                 Environmental taxes

                                                                                                                                                                                             Industrial and manufacturing
                                                                                                                                                                                             processes
                                                        xxxx

                                                                                                                                                                                             Plastics and packaging
                                                    xxxxxxxx
                                                        xxxxx
                                                              x
                                                    xxxxxxxx
                                                              x
                                                        xxxxx

                                                              x

                                                                                                                                                                                             Water use reduction and thermal
                                                                                                                                                                                             energy production
                                                                x

                                                                                                                                                                                             Waste reduction/recycling
                                                                  x
                                                                  x
                                                                  x
                                                                  x
                                                                  x

                                                        xxxxxxx

                                                                                                                                                                                             Electronic waste

                                                                                                                                                                                             Emission reduction

                                                                                                                                                                                             Conventional and alternative fuel
                       x
                                                         xx
                                                          x
                                                         xx
                                                                                                                                    x
                                                                                                                                    x
                                                                                                                                   xx
                                                                                                                                    x

                                                                                                                                                                                             On-site generation
                                         x

                                                                                                                                                                                             Renewable energy
                       x
                                                                                                                                      x

                                                                                                                                                                                             Conventional generation
                                                             x
                                                                                                                                                                                                                                                 Environmental tax exemptions

                                                                                                                                                                                             Energy efficiency, industrial and
                                                                                                                                                                                             manufacturing processes
                                                                                                                                        xx
                                                                                                                                                                                     xx
                                                                                                                                                                                                                                                                                            Return to jurisdiction list

                                                                                                                                                                                             Plastics and packaging
                                         xx
                                                               x
                                                                                                                                           x
                                                                                                                                    xxxxxx

                                                         xxxxxxx
Page 7
                                                                                                             Spain
                                                                                                                                                                         Russia

                                                                  Turkey
                                                                                      Taiwan
                                                                                                                                                  Slovakia

                       Vietnam
                                                                                                                                                                                            Portugal

                                                                           Thailand
                                                                                                                                                                                  Romania

                                                                                                                                                             Singapore

                                                                                               Switzerland
                                                                                                                     South Korea
                                                                                                                                   South Africa
                                                                                                                                                                                                           for more details.

                                 United States
                                                 United Kingdom
                                                                                                                                                                                                           an item at the jurisdictional or local
                                                                                                                                                                                                           Note: An X indicates the presence of

                                                                                                                                                                                                           level, please see the jurisdiction page
                                                                                                                                                                                                       ETS implemented

                       x
                       x
                                                                                                                                                                                  x
                                                                                                                                                                                  x

                       x
                       x
                                                                                                                                                                                                       ETS under construction

                         x
                       xx
                         x
                         x

                         x

EY Green Tax Tracker
                                                                                                                                                                                                       Carbon tax implemented

                           x
                           x
                           x
                                                                                                                                                                                            x
                                                                                                                                                                                                                                                           Carbon pricing

                                                                                                                                                                                                       Carbon tax under consideration

                             x
                                                                                                                                                                                                       Energy efficient buildings
                                                                                                                                                                                                                                                                                                                                                                         Index of measures (continued)

                                                                                                                                                                                                       Energy efficient process equip.

                             xxx
                             xxx
                               xx
                                x
                             xxx

                                x
                                                                                                                                                                                                                                                                                                               Find the most current version of this tracker on ey.com

                                                                                                                                                                                                       Water use reduction technologies

                               xxx
                                                                                                                                                                                                                                                     Reduce

                                                                                                                                                                                                       Waste reduction/recycling tech.
                                   x

                                   x
                                                                                                                                                                                                       Emission reduction technologies

                               xxxxx
                               xxxxx                                                                                                                                                                   Alt fuel – vehicles/infrastructure

                                   xxx
                                   xxx
                                  xxxx
                               xxxxxx
                               xxxxxx
                                      x

                                                                                                                                                                                                       Hydrogen-based fuels
                                                                                                                                                                                                                                                     Switch

                                                                                                                                                                                                       On-site generation

                                                                                                                                                                                                       Renewable energy generation
                                         x
                                         x
                                         x
                               xxxxxxxxx
                                         x

                                   xxxxxx

                                                                                                                                                                                                       Recycled materials/recycling
                                                                                                                                                                                                                                                                          Sustainability incentives

                                   xxxxxxx                                                                                                                                                             equipment
                                         xx
                                        xxx

                                         xx

                                                                                                                                                                                                       R&D machinery for manufacturing
                                                                                                                                                                                                       "green" products
                                         xxx
                                            x
                                            x

                                                                                                                                                                                                       Carbon capture technologies
                                              x
                                         xxxx
                                   xxxxxxxxx
                                              x

                                     xxxxxxxx
                                            xx
                                                                                                                                                                                                                                                     Innovate

                                                                                                                                                                                                       Green jobs/training
                                                x

                                                                                                                                                                                                       Plastics and packaging
                                                  x

                                                  x

                                                                                                                                                                                                       Water consumption, pollution and
                                                                                                                                                                                                       effluent charges
                                                  xx

                                                                                                                                                                                                       Recycling, waste and landfills
                                                     x
                                                    xx
                                                    xx

                                                     x

                                                                                                                                                                                                       Electronic waste
                                                    xxx
                                                    xxx

                                                                                                                                                                                                       Emissions and air pollution
                                                        x
                                                    xxxx
                                                     xxx

                                                                                                                                                                                                       Conventional and alternative fuels
                                                  xxxxxx
                                                          x
                                                        xx

                                                                                                                                                                                                       Energy/electricity generation,
                                                                                                                                                                                                       distribution and consumption
                                                    xxxxxx
                                                            x
                                                                                                                                                                                                                                                           Environmental taxes

                                                                                                                                                                                                       Industrial and manufacturing
                                                                                                                                                                                                       processes
                                                    xxxxxxx

                                                                                                                                                                                                       Plastics and packaging
                                                              xx
                                                    xxxxxxxx
                                                               x
                                                               x
                                                        xxxxx
                                                               x
                                                               x
                                                              xx

                                                        xxxxx

                                                                                                                                                                                                       Water use reduction and thermal
                                                                                                                                                                                                       energy production

                                                                                                                                                                                                       Waste reduction/recycling
                                                                  x
                                                                  x
                                                                 xx
                                                        xxxxxxx
                                                                  x
                                                                  x

                                                                  x
                                                                 xx

                                                                                                                                                                                                       Electronic waste
                                                                  xx
                                                                  xx

                                                                                                                                                                                                       Emission reduction
                                                                     x

                                                                                                                                                                                                       Conventional and alternative fuel
                                                                     xx
                                                                     xx
                                                                     xx
                                                                     xx
                                                                     xx

                                                                                                                                                                                                       On-site generation
                                                                     xxx

                                                                                                                                                                                                       Renewable energy
                                                                         x
                                                                         x
                                                                         x
                                                                         x

                                                                                                                                                                                                       Conventional generation
                                                                                                                                                                                                                                                           Environmental tax exemptions

                                                                                                                                                                                                       Energy efficiency, industrial and
                                                                                                                                                                                                       manufacturing processes
                                                                            x
                                                                            x
                                                                            x
                                                                            x

                                                                     xxxxxx
                                                                            x
                                                                                                                                                                                                                                                                                                      Return to jurisdiction list

                                                                                                                                                                                                       Plastics and packaging
                                                                              x
                                                                     xxxxxxx
                                                                           xxx
• Contact: Gustavo Scravaglieri, Ariel Becher
Argentina
Find the most current version of this tracker on ey.com                                                                                                                               Return to jurisdiction list
                                                                                                                                                                                      J = Jurisdictional level; L = Local level

 Outlook                                                                 Sustainability incentives                                             Environmental taxes
                                                                                                                                      J   L                                                                       J       L
Sustainability tax incentives have been in place for over 15 years in
                                                                                                                                                Water consumption, pollution and effluent charges
Argentina and a national carbon tax was implemented in 2018, but        Reduce
the country’s holistic approach to environmental tax policy is still                                                                            Recycling, waste and landfills
                                                                        Construction/retrofit of energy-efficient buildings
emerging.                                                                                                                                       Electronic waste

The national carbon tax – estimated to cover 20% of the country’s
                                                                        Energy efficient process equipment (VFD, refrigeration,
                                                                        furnace, etc.)                                                x         Emissions and air pollution
                                                                                                                                                                                                                x
greenhouse gas emissions – is the top focus area of environmental
tax policy.
                                                                        Water use reduction technologies                                        Conventional and alternative fuels (vehicles and equipment)
                                                                                                                                                                                                                x
                                                                        Waste reduction/recycling technologies                                  Energy/electricity generation, distribution and consumption
                                                                                                                                                                                                                x
Argentina also has several incentive programs to promote
technological development, renewable energy and biofuel utilization,
                                                                        Emission reduction technologies                                         Industrial and manufacturing processes
                                                                                                                                                                                                                x
                                                                        Switch                                                                  Plastics and packaging
wind and solar energy generation, and investment in forestry
projects.                                                               Alt fuel (EV/LNG/CNG) vehicles/infrastructure
                                                                                                                                      x         Environmental tax exemptions
                                                                        Hydrogen-based fuels
                                                                                                                                      x                                                                           J       L
                                                                        On-site generation (cogeneration/waste heat/fuel
                                                                        cells/microturbines)                                          x         Water use reduction and thermal energy production
                                                                                                                                                Waste reduction/recycling
                                                                        Renewable energy generation (solar, wind, geothermal, etc.)
                                                                                                                                      x         Electronic waste
                                                                        Innovate
                                                                                                                                                Emission reduction
                                                                        Use of recycled materials/investment in recycling equipment
 Carbon pricing                                                                                                                                 Conventional and alternative fuel vehicles and equipment
                                                            J      L    R&D machinery for manufacturing "green" products
                                                                                                                                      x         On-site generation (cogeneration/waste heat/fuel
                                                                                                                                                cells/microturbines
ETS implemented                                                         Carbon capture technologies (sequestration/utilization)
                                                                                                                                                Renewable energy (solar, wind, geothermal, etc.)
ETS under consideration                                                 Green jobs/training
                                                                                                                                                Conventional generation
Carbon tax implemented
                                                          x             Plastics and packaging
                                                                                                                                                Energy efficiency, industrial and manufacturing processes
Carbon tax under consideration                                                                                                                  Plastics and packaging

Page 8                           EY Green Tax Tracker                   Information current as of: 8 March 2022
• Contact: Laurence Osen, Simon Whyte
Australia
Find the most current version of this tracker on ey.com                                                                                                                              Return to jurisdiction list
                                                                                                                                                                                     J = Jurisdictional level; L = Local level

 Outlook                                                                  Sustainability incentives                                            Environmental taxes
                                                                                                                                       J   L                                                                     J       L
Sustainability tax programs are still emerging in Australia, including
additional clean energy technology incentive measures. There are                                                                               Water consumption, pollution and effluent charges
                                                                         Reduce
currently targeted sustainability grant funding programs offered by
both federal and state governments.                                      Construction/retrofit of energy-efficient buildings
                                                                                                                                       xx
                                                                                                                                               Recycling, waste and landfills
                                                                                                                                                                                                               x
                                                                                                                                               Electronic waste

There is currently no carbon tax in Australia. To supplement the
                                                                         Energy efficient process equipment (VFD, refrigeration,
                                                                         furnace, etc.)                                                xx      Emissions and air pollution
absence of a carbon tax, Australia utilizes an Emission Trading
System (ETS) whereby large emitters are liable under the safeguard
                                                                         Water use reduction technologies
                                                                                                                                       xx      Conventional and alternative fuels (vehicles and equipment)
                                                                                                                                                                                                               x
mechanism. Carbon credits are issued against a baseline for eligible     Waste reduction/recycling technologies
                                                                                                                                       xx      Energy/electricity generation, distribution and consumption
emitters to meet a portion of their liability obligations. Australia
also has a carbon crediting system and government fund (the ERF)
                                                                         Emission reduction technologies
                                                                                                                                       xx      Industrial and manufacturing processes

                                                                         Switch                                                                Plastics and packaging
whereby credits are subsequently traded bilaterally to met
voluntary commitments.                                                   Alt fuel (EV/LNG/CNG) vehicles/infrastructure
                                                                                                                                       xx      Environmental tax exemptions
There is a national excise tax on petrol, diesel and other fuels such
as liquefied petroleum gas or ethanol. Additionally, there are
                                                                         Hydrogen-based fuels
                                                                                                                                       xx                                                                        J       L

multiple State and Territory levies, charges and fines on pollution.
                                                                         On-site generation (cogeneration/waste heat/fuel
                                                                         cells/microturbines)                                          xx      Water use reduction and thermal energy production

                                                                         Renewable energy generation (solar, wind, geothermal, etc.)
                                                                                                                                       xx
                                                                                                                                               Waste reduction/recycling
                                                                                                                                                                                                               xx
                                                                                                                                               Electronic waste
                                                                         Innovate
                                                                                                                                               Emission reduction
 Carbon pricing                                                          Use of recycled materials/investment in recycling equipment
                                                                                                                                       xx      Conventional and alternative fuel vehicles and equipment
                                                                                                                                                                                                               x
                                                             J     L     R&D machinery for manufacturing "green" products
                                                                                                                                       xx      On-site generation (cogeneration/waste heat/fuel
                                                                                                                                               cells/microturbines
ETS implemented
                                                           x             Carbon capture technologies (sequestration/utilization)
                                                                                                                                       xx      Renewable energy (solar, wind, geothermal, etc.)
ETS under consideration
                                                           x             Green jobs/training
                                                                                                                                       xx      Conventional generation
Carbon tax implemented                                                   Plastics and packaging
                                                                                                                                       xx      Energy efficiency, industrial and manufacturing processes
                                                                                                                                                                                                               x
Carbon tax under consideration                                                                                                                 Plastics and packaging

Page 9                           EY Green Tax Tracker                    Information current as of: 1 March 2022
• Contact: Markus Schragl, Sebastian Koch
 Austria
 Find the most current version of this tracker on ey.com                                                                                                                               Return to jurisdiction list
                                                                                                                                                                                       J = Jurisdictional level; L = Local level

  Outlook                                                                  Sustainability incentives                                            Environmental taxes
                                                                                                                                        J   L                                                                      J       L
Sustainability tax policies are well established in Austria, for
example, the fuel tax can be traced back to the first half of the         Reduce
                                                                                                                                                 Water consumption, pollution and effluent charges
                                                                                                                                                                                                                  x
20th century, while additional CO 2 taxation is currently under
consideration and further sustainability tax programs are expected        Construction/retrofit of energy-efficient buildings
                                                                                                                                        x
                                                                                                                                                 Recycling, waste and landfills
                                                                                                                                                                                                                 xx
                                                                                                                                                 Electronic waste
in the future. The most significant measures are on a national
level, however, there are also measures at a local level. Energy
                                                                          Energy efficient process equipment (VFD, refrigeration,
                                                                          furnace, etc.)                                                x        Emissions and air pollution
                                                                                                                                                                                                                 x
taxes (fuel taxes, electricity tax) have been the top focus in recent
years, though carbon taxes are a growing focus.
                                                                          Water use reduction technologies
                                                                                                                                        x        Conventional and alternative fuels (vehicles and equipment)
                                                                                                                                                                                                                 x
                                                                          Waste reduction/recycling technologies
                                                                                                                                        x        Energy/electricity generation, distribution and consumption
                                                                                                                                                                                                                 x
Of interest is the currently proposed CO 2 tax which is drafted to be
paid back to the citizens (individuals) in the form of a “climate
                                                                          Emission reduction technologies
                                                                                                                                        x        Industrial and manufacturing processes

                                                                          Switch                                                                 Plastics and packaging
bonus” and differs depending on the location of residency of the
citizen. Basically, the extra cost deriving from this CO 2 tax due to     Alt fuel (EV/LNG/CNG) vehicles/infrastructure                          Environmental tax exemptions
living remotely with little access to sufficient public transport shall
be compensated. That way, citizens who can use public transport           Hydrogen-based fuels                                                                                                                     J       L
instead of car shall be motivated to save money through switching
to means of transport emitting less CO 2. However, implementation
                                                                          On-site generation (cogeneration/waste heat/fuel
                                                                          cells/microturbines)                                          x        Water use reduction and thermal energy production
                                                                                                                                                 Waste reduction/recycling
discussions are still ongoing.                                            Renewable energy generation (solar, wind, geothermal, etc.)
                                                                                                                                        x        Electronic waste
                                                                          Innovate
                                                                                                                                                 Emission reduction
  Carbon pricing                                                          Use of recycled materials/investment in recycling equipment
                                                                                                                                        x        Conventional and alternative fuel vehicles and equipment
                                                                                                                                                                                                                 x
                                                               J      L   R&D machinery for manufacturing "green" products
                                                                                                                                        x        On-site generation (cogeneration/waste heat/fuel
                                                                                                                                                 cells/microturbines
 ETS implemented
                                                             x            Carbon capture technologies (sequestration/utilization)

                                                                          Green jobs/training
                                                                                                                                                 Renewable energy (solar, wind, geothermal, etc.)
                                                                                                                                                                                                                 x
 ETS under consideration
                                                                                                                                                 Conventional generation
 Carbon tax implemented                                                   Plastics and packaging
                                                                                                                                                 Energy efficiency, industrial and manufacturing processes
 Carbon tax under consideration
                                                             x                                                                                   Plastics and packaging

 Page 10                          EY Green Tax Tracker                    Information current as of: 11 March 2022
• Contact: Philippe Lesage, Wouter Desmet, Sofie Van Doninck
Belgium
Find the most current version of this tracker on ey.com                                                                                                                                 Return to jurisdiction list
                                                                                                                                                                                        J = Jurisdictional level; L = Local level

 Outlook                                                                    Sustainability incentives                                            Environmental taxes
                                                                                                                                         J   L                                                                      J       L
Belgium’s sustainability tax programs are well-established and wide
ranging, including implementation of EU level environmental                Reduce
                                                                                                                                                  Water consumption, pollution and effluent charges
                                                                                                                                                                                                                   x
legislation and policy. Most measures are at the local level, due to the
federal nature of Belgium. Environmental regulation and policy sit
                                                                           Construction/retrofit of energy-efficient buildings
                                                                                                                                         x
                                                                                                                                                  Recycling, waste and landfills
                                                                                                                                                                                                                  xx
                                                                                                                                                  Electronic waste
with the regions (Brussels Region, Flanders Region, Wallonia Region),
which each having their own parliaments and regional waste and
                                                                           Energy efficient process equipment (VFD, refrigeration,
                                                                           furnace, etc.)                                                xx       Emissions and air pollution
environmental agencies.                                                    Water use reduction technologies
                                                                                                                                           x      Conventional and alternative fuels (vehicles and equipment)
                                                                                                                                                                                                                  x
Belgium has relatively high fuel taxes on consumer fuels and a very
                                                                           Waste reduction/recycling technologies
                                                                                                                                           x      Energy/electricity generation, distribution and consumption
                                                                                                                                                                                                                  x
high recycling rate, in part due to the early introduction of landfill
bans and high landfill taxes and charges. Linked to this, Belgium has
                                                                           Emission reduction technologies
                                                                                                                                           x      Industrial and manufacturing processes
                                                                                                                                                                                                                  x
a relatively successful extended producer responsibility (EPR) system
                                                                           Switch                                                                 Plastics and packaging
                                                                                                                                                                                                                  x
for both household and industrial packaging. Belgium is often cited as
a European leader in terms of recycling and EPR.
                                                                           Alt fuel (EV/LNG/CNG) vehicles/infrastructure
                                                                                                                                         x        Environmental tax exemptions
                                                                           Hydrogen-based fuels
                                                                                                                                         x                                                                          J       L

There is a political impetus – combined with strong consumer and
citizen support – for further or stricter environmental taxes,
                                                                           On-site generation (cogeneration/waste heat/fuel
                                                                           cells/microturbines)                                          xx       Water use reduction and thermal energy production
                                                                                                                                                                                                                  x
                                                                                                                                                  Waste reduction/recycling
regulations and policies, going forward.                                   Renewable energy generation (solar, wind, geothermal, etc.)
                                                                                                                                         xx       Electronic waste
                                                                           Innovate
                                                                                                                                                  Emission reduction
 Carbon pricing                                                            Use of recycled materials/investment in recycling equipment
                                                                                                                                         x        Conventional and alternative fuel vehicles and equipment
                                                                                                                                                                                                                  x
                                                             J     L       R&D machinery for manufacturing "green" products
                                                                                                                                         x        On-site generation (cogeneration/waste heat/fuel
                                                                                                                                                  cells/microturbines                                             x
ETS implemented
                                                           x               Carbon capture technologies (sequestration/utilization)
                                                                                                                                         x        Renewable energy (solar, wind, geothermal, etc.)
                                                                                                                                                                                                                  x
                                                                           Green jobs/training
ETS under consideration
                                                                           Plastics and packaging
                                                                                                                                                  Conventional generation
                                                                                                                                                                                                                  x
Carbon tax implemented

Carbon tax under consideration
                                                                                                                                                  Energy efficiency, industrial and manufacturing processes
                                                                                                                                                                                                                  x
                                                                                                                                                  Plastics and packaging

Page 11                          EY Green Tax Tracker                      Information current as of: 17 March 2022
• Contact: Waine Peron, Priscila Vergueiro, Ricardo F Costa, Francisca Lacerd,
 Brazil                                                                                                                     Gabriel Martins

 Find the most current version of this tracker on ey.com                                                                                                                                Return to jurisdiction list
                                                                                                                                                                                        J = Jurisdictional level; L = Local level

  Outlook                                                                  Sustainability incentives                                              Environmental taxes
                                                                                                                                        J     L                                                                     J       L
Sustainability tax programs are still emerging in Brazil. However,
some general incentives focused on infrastructure and innovation                                                                                  Water consumption, pollution and effluent charges
                                                                          Reduce
often apply to sustainable projects.                                                                                                              Recycling, waste and landfills

Carbon taxes and an emissions trading system ETS are currently
                                                                          Construction/retrofit of energy-efficient buildings
                                                                                                                                        xx        Electronic waste

under analysis by the Brazilian government, with no set date for
                                                                          Energy efficient process equipment (VFD, refrigeration,
                                                                          furnace, etc.)                                                xx        Emissions and air pollution
                                                                                                                                                                                                                  x
new rules. The government is carrying out a study for economic
impact, and ETS simulations with three top Brazil companies. Some
                                                                          Water use reduction technologies
                                                                                                                                        xx        Conventional and alternative fuels (vehicles and equipment)
                                                                                                                                                                                                                  x
states, such as São Paulo and Rio de Janeiro are assessing the            Waste reduction/recycling technologies
                                                                                                                                        xx        Energy/electricity generation, distribution and consumption
                                                                                                                                                                                                                  x
possibility of ETS programs on a state level.                             Emission reduction technologies
                                                                                                                                        xx        Industrial and manufacturing processes
                                                                                                                                                                                                                  x
                                                                          Switch                                                                  Plastics and packaging
The government is currently focusing on biofuels (the RenovaBio
program) and vehicles (ROTA2030). RenovaBio was approved in
2017 and establishes mandatory goals for the reduction of GHG
                                                                          Alt fuel (EV/LNG/CNG) vehicles/infrastructure
                                                                                                                                        xx         Environmental tax exemptions
emissions by avoiding the use of fossil fuels. The system basically       Hydrogen-based fuels
                                                                                                                                        xx                                                                          J       L
allows for the certification of biofuels. The law also creates a
decarbonization credit that combines the emissions reduction
                                                                          On-site generation (cogeneration/waste heat/fuel
                                                                          cells/microturbines)                                          xx        Water use reduction and thermal energy production
                                                                                                                                                                                                                  xx
targets and the live cycle assessment of each biofuel producer.           Renewable energy generation (solar, wind, geothermal, etc.)
                                                                                                                                        xx
                                                                                                                                                  Waste reduction/recycling
                                                                                                                                                                                                                  xx
                                                                          Innovate
                                                                                                                                                  Electronic waste
                                                                                                                                                                                                                  xx
  Carbon pricing                                                          Use of recycled materials/investment in recycling equipment
                                                                                                                                        xx
                                                                                                                                                  Emission reduction
                                                                                                                                                                                                                  xx
                                                                                                                                                  Conventional and alternative fuel vehicles and equipment
                                                                                                                                                                                                                  x
                                                             J        L   R&D machinery for manufacturing "green" products
                                                                                                                                        xx        On-site generation (cogeneration/waste heat/fuel
                                                                                                                                                  cells/microturbines                                             xx
 ETS implemented
                                                           x              Carbon capture technologies (sequestration/utilization)
                                                                                                                                        xx        Renewable energy (solar, wind, geothermal, etc.)
                                                                                                                                                                                                                  xx
 ETS under consideration
                                                           xx             Green jobs/training
                                                                                                                                        xx        Conventional generation
                                                                                                                                                                                                                  xx
 Carbon tax implemented                                                   Plastics and packaging
                                                                                                                                        xx        Energy efficiency, industrial and manufacturing processes
                                                                                                                                                                                                                  xx
 Carbon tax under consideration                                                                                                                   Plastics and packaging
                                                                                                                                                                                                                  xx
 Page 12                          EY Green Tax Tracker                    Information current as of: 7 March 2022
• Contact: Fred O'Riordan, Michael Mitchell
 Canada
 Find the most current version of this tracker on ey.com                                                                                                                               Return to jurisdiction list
                                                                                                                                                                                       J = Jurisdictional level; L = Local level

  Outlook                                                                 Sustainability incentives                                             Environmental taxes
Canada’s sustainability tax programs at both the federal and                                                                           J   L                                                                       J       L
provincial levels have been in place for several years and continue to
evolve. Over time, the two levels have worked together to harmonize      Reduce
                                                                                                                                                 Water consumption, pollution and effluent charges
                                                                                                                                                                                                                        x
the application of environmental regulations including water, air,       Construction/retrofit of energy-efficient buildings
                                                                                                                                        x
                                                                                                                                                 Recycling, waste and landfills
                                                                                                                                                                                                                        x
land and environmental assessment.                                       Energy efficient process equipment (VFD, refrigeration,
                                                                         furnace, etc.)                                                 x
                                                                                                                                                 Electronic waste
                                                                                                                                                                                                                        x
                                                                                                                                                 Emissions and air pollution
In 2016, Canada adopted the Pan-Canadian Framework (PCF) which
focused on pricing carbon pollution, complementary actions to
                                                                         Water use reduction technologies
                                                                                                                                        x        Conventional and alternative fuels (vehicles and equipment)
reduce emissions economy-wide, adaptation and climate resilience,
and clean technology, innovation and jobs.
                                                                         Waste reduction/recycling technologies
                                                                                                                                        x        Energy/electricity generation, distribution and consumption
                                                                         Emission reduction technologies
                                                                                                                                       xx        Industrial and manufacturing processes
                                                                                                                                                                                                                        x
There are currently federal sustainability funding programs, federal
accelerated depreciation for qualifying clean energy investments and
                                                                         Switch                                                                  Plastics and packaging
                                                                                                                                                                                                                        x
several provincial sustainability programs, most taking the form of
                                                                         Alt fuel (EV/LNG/CNG) vehicles/infrastructure
                                                                                                                                       xx        Environmental tax exemptions
grants or rebates.                                                       Hydrogen-based fuels
                                                                                                                                       x                                                                           J       L

Canada established a carbon pricing framework in 2018. Flexibility
                                                                         On-site generation (cogeneration/waste heat/fuel
                                                                         cells/microturbines)                                            x       Water use reduction and thermal energy production
                                                                                                                                                                                                                        x
was provided to provinces and territories to establish their own         Renewable energy generation (solar, wind, geothermal, etc.)
                                                                                                                                       xx
                                                                                                                                                 Waste reduction/recycling
                                                                                                                                                                                                                        x
pricing plans with a federal backstop implemented if a local plan did
not meet federal standards.                                              Innovate
                                                                                                                                                 Electronic waste
                                                                                                                                                                                                                        x
  Carbon pricing                                                         Use of recycled materials/investment in recycling equipment
                                                                                                                                       x
                                                                                                                                                 Emission reduction
                                                                                                                                                                                                                        x
                                                                                                                                                 Conventional and alternative fuel vehicles and equipment
                                                                                                                                                                                                                        x
                                                             J     L     R&D machinery for manufacturing "green" products
                                                                                                                                       x         On-site generation (cogeneration/waste heat/fuel
                                                                                                                                                 cells/microturbines
 ETS implemented
                                                           xx            Carbon capture technologies (sequestration/utilization)
                                                                                                                                       x         Renewable energy (solar, wind, geothermal, etc.)
 ETS under consideration                                                 Green jobs/training
                                                                                                                                       xx        Conventional generation
 Carbon tax implemented
                                                           xx            Plastics and packaging
                                                                                                                                       x         Energy efficiency, industrial and manufacturing processes
 Carbon tax under consideration                                                                                                                  Plastics and packaging

 Page 13                          EY Green Tax Tracker                   Information current as of: 1 March 2022
• Contact: Alan Lan, Andrea Yue, Yao Lu, Shirley Yong, Derrick Chen, Daniel Zou
 China Mainland                                                                                                             Andy SY Leung, Alvin SH Lin, Sarah YX Shi, Ivanka WY He

 Find the most current version of this tracker on ey.com                                                                                                                                 Return to jurisdiction list
                                                                                                                                                                                         J = Jurisdictional level; L = Local level

  Outlook                                                                  Sustainability incentives                                              Environmental taxes
China Mainland has long established, but still evolving, sustainability                                                                 J   L                                                                        J       L
tax programs. At the national level, there are three environmental
protection focus areas: pollution reduction, greenhouse gas
                                                                          Reduce
                                                                                                                                                   Water consumption, pollution and effluent charges
                                                                                                                                                                                                                   x
reduction and resource conservation. There are multiple tax               Construction/retrofit of energy-efficient buildings
                                                                                                                                        x
                                                                                                                                                   Recycling, waste and landfills
                                                                                                                                                                                                                   x
incentives that address the three focus areas and utilize different       Energy efficient process equipment (VFD, refrigeration,
                                                                                                                                        x
                                                                                                                                                   Electronic waste
                                                                                                                                                                                                                   x
mechanisms, including reduced corporate income tax rates for              furnace, etc.)                                                           Emissions and air pollution
                                                                                                                                                                                                                   x
certain enterprises or for certain revenue sources, increased VAT
refunds or tax exemptions.
                                                                          Water use reduction technologies
                                                                                                                                        x          Conventional and alternative fuels (vehicles and equipment)
                                                                                                                                                                                                                   x
For pollution reduction, China Mainland launched the Environmental
                                                                          Waste reduction/recycling technologies
                                                                                                                                        x          Energy/electricity generation, distribution and consumption

Protection Tax (EPT), which is levied on the emission of four
                                                                          Emission reduction technologies
                                                                                                                                        x          Industrial and manufacturing processes

categories of pollutants, namely gas, water, solid wastes, as well as     Switch                                                                   Plastics and packaging
noises. The EPT was launched in 2018, but in fact replaced the long
existing Pollutants Discharge Fee, which was levied on basically the
                                                                          Alt fuel (EV/LNG/CNG) vehicles/infrastructure
                                                                                                                                        x          Environmental tax exemptions
same classes of pollutants.                                               Hydrogen-based fuels                                                                                                                       J       L

For greenhouse gas reduction, a carbon emission trading system was
                                                                          On-site generation (cogeneration/waste heat/fuel
                                                                          cells/microturbines)                                          x          Water use reduction and thermal energy production
                                                                                                                                                                                                                   x
recently established and there is discussion regarding a carbon tax to    Renewable energy generation (solar, wind, geothermal, etc.)
                                                                                                                                        x
                                                                                                                                                   Waste reduction/recycling
                                                                                                                                                                                                                   x
help China Mainland achieve its carbon goals of reaching carbon peak
by 2030 and carbon neutrality by 2060.                                    Innovate
                                                                                                                                                   Electronic waste
                                                                                                                                                                                                                   x
  Carbon pricing                                                          Use of recycled materials/investment in recycling equipment
                                                                                                                                        x
                                                                                                                                                   Emission reduction
                                                                                                                                                                                                                   x
                                                              J     L     R&D machinery for manufacturing "green" products
                                                                                                                                        x
                                                                                                                                                   Conventional and alternative fuel vehicles and equipment
                                                                                                                                                                                                                   x
                                                                                                                                        x
                                                                                                                                                   On-site generation (cogeneration/waste heat/fuel
                                                                                                                                                   cells/microturbines                                             x
 ETS implemented
                                                            xx            Carbon capture technologies (sequestration/utilization)

                                                                          Green jobs/training
                                                                                                                                                   Renewable energy (solar, wind, geothermal, etc.)
                                                                                                                                                                                                                   x
 ETS under consideration
                                                                                                                                                   Conventional generation
                                                                          Plastics and packaging
 Carbon tax implemented

 Carbon tax under consideration
                                                                                                                                                   Energy efficiency, industrial and manufacturing processes
                                                                                                                                                                                                                   x
                                                                                                                                                   Plastics and packaging

 Page 14                          EY Green Tax Tracker                    Information current as of: 25 February 2022
• Contact: Margarita Salas, Catalina Sandoval, Daniel F. Ortegón, Josep M. Abert
 Colombia
Find the most current version of this tracker on ey.com                                                                                                                                Return to jurisdiction list
                                                                                                                                                                                       J = Jurisdictional level; L = Local level

  Outlook                                                                 Sustainability incentives                                             Environmental taxes
                                                                                                                                       J   L                                                                       J       L
Green tax programs are still emerging in Colombia, with most
existing measures occurring at the national level, such as the carbon
tax and the plastic bag consumption tax.
                                                                         Reduce
                                                                                                                                                 Water consumption, pollution and effluent charges
                                                                                                                                                                                                                 x
                                                                                                                                                 Recycling, waste and landfills

In addition to taxes, there are favorable tax benefits for environment
                                                                         Construction/retrofit of energy-efficient buildings
                                                                                                                                       x         Electronic waste

friendly investments, such as energy efficiency investments and
                                                                         Energy efficient process equipment (VFD, refrigeration,
                                                                         furnace, etc.)                                                x         Emissions and air pollution
                                                                                                                                                                                                                        x
unconventional sources of energy investments.                            Water use reduction technologies
                                                                                                                                       x         Conventional and alternative fuels (vehicles and equipment)
                                                                                                                                                                                                                        x
The Colombian Government is considering more green tax measures,         Waste reduction/recycling technologies
                                                                                                                                       x         Energy/electricity generation, distribution and consumption
but there is no consensus yet.                                           Emission reduction technologies
                                                                                                                                       x         Industrial and manufacturing processes

                                                                         Switch                                                                  Plastics and packaging
                                                                                                                                                                                                                        x
                                                                         Alt fuel (EV/LNG/CNG) vehicles/infrastructure
                                                                                                                                       x         Environmental tax exemptions
                                                                         Hydrogen-based fuels
                                                                                                                                       x                                                                           J       L
                                                                         On-site generation (cogeneration/waste heat/fuel
                                                                         cells/microturbines)                                          x         Water use reduction and thermal energy production
                                                                                                                                                 Waste reduction/recycling
                                                                         Renewable energy generation (solar, wind, geothermal, etc.)
                                                                                                                                       x         Electronic waste
                                                                         Innovate

  Carbon pricing                                                         Use of recycled materials/investment in recycling equipment
                                                                                                                                       x
                                                                                                                                                 Emission reduction
                                                                                                                                                                                                                        x
                                                            J     L      R&D machinery for manufacturing "green" products
                                                                                                                                                 Conventional and alternative fuel vehicles and equipment
                                                                                                                                                                                                                        x
 ETS implemented                                                         Carbon capture technologies (sequestration/utilization)
                                                                                                                                       x
                                                                                                                                                 On-site generation (cogeneration/waste heat/fuel
                                                                                                                                                 cells/microturbines                                                    x
 ETS under consideration                                                 Green jobs/training
                                                                                                                                                 Renewable energy (solar, wind, geothermal, etc.)
                                                                                                                                                                                                                        x
                                                                                                                                                 Conventional generation
 Carbon tax implemented
                                                          x              Plastics and packaging
                                                                                                                                                 Energy efficiency, industrial and manufacturing processes
                                                                                                                                                                                                                        x
 Carbon tax under consideration                                                                                                                  Plastics and packaging

 Page 15                          EY Green Tax Tracker                   Information current as of: 9 March 2022
• Contact: Simos Simou, Ioanna Drousioti, Marina Ioannou
 Cyprus
Find the most current version of this tracker on ey.com                                                                                                                            Return to jurisdiction list
                                                                                                                                                                                   J = Jurisdictional level; L = Local level

 Outlook                                                               Sustainability incentives                                             Environmental taxes
                                                                                                                                    J   L                                                                      J       L
Currently, the only sustainability tax program in Cyprus is the
Tonnage Tax Reduction of up to 30% for each marine vessel which                                                                              Water consumption, pollution and effluent charges
                                                                      Reduce
demonstrates proactive measures to reduce its environmental                                                                                  Recycling, waste and landfills
impact.                                                               Construction/retrofit of energy-efficient buildings
                                                                                                                                             Electronic waste
                                                                      Energy efficient process equipment (VFD, refrigeration,
More sustainability tax programs could emerge as part of the Cyprus   furnace, etc.)                                                         Emissions and air pollution
Recovery and Resilience Plan. The plan includes a number of           Water use reduction technologies                                       Conventional and alternative fuels (vehicles and equipment)
legislative changes which are expected to be implemented by June
2026. The aim is to promote a more efficient use of environmental     Waste reduction/recycling technologies
                                                                                                                                    x        Energy/electricity generation, distribution and consumption
resources, reduced greenhouse gas emissions and increase the
availability of renewable energy.
                                                                      Emission reduction technologies
                                                                                                                                    x        Industrial and manufacturing processes

                                                                      Switch                                                                 Plastics and packaging
                                                                                                                                                                                                             x
The expected changes currently under review or discussion include:
introduction of carbon tax for fuels used in the sectors of the
                                                                      Alt fuel (EV/LNG/CNG) vehicles/infrastructure
                                                                                                                                    x         Environmental tax exemptions
economy that do not fall under the EU greenhouse gas emissions        Hydrogen-based fuels                                                                                                                     J       L
trading system, gradual introduction of a levy on water and           On-site generation (cogeneration/waste heat/fuel                       Water use reduction and thermal energy production
introduction of a charge on household and landfill waste.             cells/microturbines)
                                                                                                                                             Waste reduction/recycling
                                                                      Renewable energy generation (solar, wind, geothermal, etc.)
                                                                                                                                             Electronic waste
                                                                      Innovate
                                                                                                                                             Emission reduction
                                                                      Use of recycled materials/investment in recycling equipment
 Carbon pricing                                                                                                                              Conventional and alternative fuel vehicles and equipment
                                                          J     L     R&D machinery for manufacturing "green" products                       On-site generation (cogeneration/waste heat/fuel
                                                                                                                                             cells/microturbines
ETS implemented
                                                        x             Carbon capture technologies (sequestration/utilization)
                                                                                                                                    x        Renewable energy (solar, wind, geothermal, etc.)
ETS under consideration                                               Green jobs/training
                                                                                                                                             Conventional generation
Carbon tax implemented                                                Plastics and packaging
                                                                                                                                             Energy efficiency, industrial and manufacturing processes
Carbon tax under consideration                                                                                                               Plastics and packaging

 Page 16                         EY Green Tax Tracker                 Information current as of: 25 January 2022
• Contact: Anders Klinge, Christian Clausen
 Denmark
Find the most current version of this tracker on ey.com                                                                                                                                Return to jurisdiction list
                                                                                                                                                                                       J = Jurisdictional level; L = Local level

  Outlook                                                                 Sustainability incentives                                             Environmental taxes
                                                                                                                                       J   L                                                                       J       L
Sustainability tax programs are well established in Denmark and have
existed for many years at the national level. There are several          Reduce
                                                                                                                                                 Water consumption, pollution and effluent charges
                                                                                                                                                                                                                 x
incentives that offer grants and rebates for investments in
technologies or projects that lead to energy saving, CO 2 reduction or   Construction/retrofit of energy-efficient buildings
                                                                                                                                                 Recycling, waste and landfills
                                                                                                                                                                                                                 x
                                                                                                                                                 Electronic waste
stimulation of the generation of sustainable energy.                     Energy efficient process equipment (VFD, refrigeration,
                                                                         furnace, etc.)                                                x         Emissions and air pollution
                                                                                                                                                                                                                 x
The Denmark carbon tax applies to greenhouse gas emissions. The
tax covers fossil fuels and waste.
                                                                         Water use reduction technologies                                        Conventional and alternative fuels (vehicles and equipment)
                                                                                                                                                                                                                 x
                                                                         Waste reduction/recycling technologies                                  Energy/electricity generation, distribution and consumption
                                                                                                                                                                                                                 x
                                                                         Emission reduction technologies
                                                                                                                                       x         Industrial and manufacturing processes
                                                                                                                                                                                                                 x
                                                                         Switch                                                                  Plastics and packaging
                                                                                                                                                                                                                 x
                                                                         Alt fuel (EV/LNG/CNG) vehicles/infrastructure
                                                                                                                                       x         Environmental tax exemptions
                                                                         Hydrogen-based fuels                                                                                                                      J       L
                                                                         On-site generation (cogeneration/waste heat/fuel
                                                                         cells/microturbines)                                          x         Water use reduction and thermal energy production
                                                                                                                                                                                                                 x
                                                                         Renewable energy generation (solar, wind, geothermal, etc.)
                                                                                                                                       x
                                                                                                                                                 Waste reduction/recycling
                                                                                                                                                                                                                 xx
                                                                                                                                                 Electronic waste
                                                                         Innovate

  Carbon pricing                                                         Use of recycled materials/investment in recycling equipment
                                                                                                                                                 Emission reduction
                                                                                                                                                                                                                 x
                                                            J     L      R&D machinery for manufacturing "green" products
                                                                                                                                       x
                                                                                                                                                 Conventional and alternative fuel vehicles and equipment
                                                                                                                                                 On-site generation (cogeneration/waste heat/fuel
                                                                                                                                                                                                                 x
                                                                                                                                                 cells/microturbines
 ETS implemented
                                                          x              Carbon capture technologies (sequestration/utilization)

                                                                         Green jobs/training
                                                                                                                                                 Renewable energy (solar, wind, geothermal, etc.)
                                                                                                                                                                                                                 x
 ETS under consideration
                                                                                                                                                 Conventional generation
                                                                                                                                                                                                                 x
 Carbon tax implemented
                                                          x              Plastics and packaging
                                                                                                                                                 Energy efficiency, industrial and manufacturing processes
                                                                                                                                                                                                                 x
 Carbon tax under consideration                                                                                                                  Plastics and packaging
                                                                                                                                                                                                                 xx
 Page 17                          EY Green Tax Tracker                   Information current as of: 11 March 2022
• Contact: Kasia Klaczynska Lewis, Wojciech Domagala
 European Union
 Find the most current version of this tracker on ey.com                                                                                                                              Return to jurisdiction list
                                                                                                                                                                                      J = Jurisdictional level; L = Local level

  Outlook                                                                 Sustainability incentives                                            Environmental taxes
Sustainability tax programs in the EU are very well established and                                                                    J   L                                                                      J       L
increasing with the European Green Deal, the EU’s plan to make its
economy sustainable. Some measures occur at the EU level, but the        Reduce
                                                                                                                                                Water consumption, pollution and effluent charges
                                                                                                                                                                                                                xx
majority are implemented at the Member State (MS) level and              Construction/retrofit of energy-efficient buildings
                                                                                                                                       x
                                                                                                                                                Recycling, waste and landfills
                                                                                                                                                                                                                xx
execution may vary in every MS due to different energy mixes and
economy structures. Other times, a measure taken on the EU level
                                                                         Energy efficient process equipment (VFD, refrigeration,
                                                                                                                                       x
                                                                                                                                                Electronic waste
                                                                                                                                                                                                                x
cascades down and is complemented by a similar measure adopted
                                                                         furnace, etc.)                                                         Emissions and air pollution
                                                                                                                                                                                                                x
by the MS(s). For instance, the plastics tax imposed by the EU on the
                                                                         Water use reduction technologies
                                                                                                                                       x        Conventional and alternative fuels (vehicles and equipment)
                                                                                                                                                                                                                x
MS will in most EU countries be supplemented by an equivalent tax
that they will in turn impose on their domestic manufacturers.
                                                                         Waste reduction/recycling technologies
                                                                                                                                       x        Energy/electricity generation, distribution and consumption
                                                                                                                                                                                                                x
                                                                         Emission reduction technologies
                                                                                                                                       x        Industrial and manufacturing processes
                                                                                                                                                                                                                x
The most significant focus areas are the EU Emissions Trading
Scheme (cap-and-trade program) and corresponding Carbon Border
                                                                         Switch                                                                 Plastics and packaging
                                                                                                                                                                                                                x
Adjustment Mechanism, currently under development, the circular
                                                                         Alt fuel (EV/LNG/CNG) vehicles/infrastructure
                                                                                                                                       x        Environmental tax exemptions
economy and decarbonization incentives.                                  Hydrogen-based fuels
                                                                                                                                       x                                                                          J       L

The EU is actively working to implement new measures. Many acts
are being revised and new mechanisms are being developed and
                                                                         On-site generation (cogeneration/waste heat/fuel
                                                                         cells/microturbines)                                          x        Water use reduction and thermal energy production
                                                                                                                                                Waste reduction/recycling
formulated to increase the effectiveness of the sustainability tax
                                                                         Renewable energy generation (solar, wind, geothermal, etc.)
                                                                                                                                       x        Electronic waste
programs and to reflect advancements in technology.                      Innovate

  Carbon pricing                                                         Use of recycled materials/investment in recycling equipment
                                                                                                                                       x
                                                                                                                                                Emission reduction
                                                                                                                                                                                                                x
                                                                                                                                                Conventional and alternative fuel vehicles and equipment
                                                            J        L   R&D machinery for manufacturing "green" products
                                                                                                                                       x        On-site generation (cogeneration/waste heat/fuel
                                                                                                                                                cells/microturbines                                             x
 ETS implemented
                                                          x              Carbon capture technologies (sequestration/utilization)
                                                                                                                                       x        Renewable energy (solar, wind, geothermal, etc.)
                                                                                                                                                                                                                x
 ETS under consideration                                                 Green jobs/training
                                                                                                                                       xx       Conventional generation
 Carbon tax implemented                                                  Plastics and packaging
                                                                                                                                       x        Energy efficiency, industrial and manufacturing processes
                                                                                                                                                                                                                x
 Carbon tax under consideration
                                                          x                                                                                     Plastics and packaging

   Page 18                        EY Green Tax Tracker                   Information current as of: 26 February 2022
• Contact: Juuso Stenius, Suvi Soppi
 Finland
Find the most current version of this tracker on ey.com                                                                                                                               Return to jurisdiction list
                                                                                                                                                                                      J = Jurisdictional level; L = Local level

  Outlook                                                                 Sustainability incentives                                             Environmental taxes
                                                                                                                                       J   L                                                                      J       L
Sustainability tax programs are well-established in Finland. There are
many environmental taxes and fees in place, and changes to current       Reduce
                                                                                                                                                Water consumption, pollution and effluent charges
                                                                                                                                                                                                                       x
or new excise duties are constantly under public discussion as a tool
to achieve Finland’s climate change policies.                            Construction/retrofit of energy-efficient buildings
                                                                                                                                                Recycling, waste and landfills
                                                                                                                                                                                                                x
                                                                                                                                                Electronic waste
                                                                         Energy efficient process equipment (VFD, refrigeration,
All energy and environmental taxes are national in Finland and           furnace, etc.)                                                         Emissions and air pollution
measures are both in part harmonized on an EU level (energy              Water use reduction technologies                                       Conventional and alternative fuels (vehicles and equipment)
taxation) and are national (e.g. waste tax, tax on beverage
containers). There are also various environmental levies                 Waste reduction/recycling technologies
                                                                                                                                       x        Energy/electricity generation, distribution and consumption
                                                                                                                                                                                                                x
implemented on the local level, for example water drainage charges
implemented by municipalities.
                                                                         Emission reduction technologies
                                                                                                                                       x        Industrial and manufacturing processes

                                                                         Switch                                                                 Plastics and packaging
                                                                                                                                                                                                                x
Finland is part of the EU ETS. Recently there has been discussion of
implementing a national emission trading system for fossil fuels used
                                                                         Alt fuel (EV/LNG/CNG) vehicles/infrastructure
                                                                                                                                       x         Environmental tax exemptions
for transportation, but there is currently no consensus.                 Hydrogen-based fuels                                                                                                                     J       L

Currently there are no proposals or published plans to implement a
                                                                         On-site generation (cogeneration/waste heat/fuel
                                                                         cells/microturbines)                                          x        Water use reduction and thermal energy production
                                                                                                                                                                                                                x
plastic packaging tax, although the Ministry of Finance has              Renewable energy generation (solar, wind, geothermal, etc.)
                                                                                                                                       x
                                                                                                                                                Waste reduction/recycling
                                                                                                                                                                                                                x
performed some studies on implementing such a tax.                                                                                              Electronic waste
                                                                         Innovate

  Carbon pricing                                                         Use of recycled materials/investment in recycling equipment
                                                                                                                                                Emission reduction
                                                                                                                                                                                                                x
                                                                                                                                                Conventional and alternative fuel vehicles and equipment
                                                            J     L      R&D machinery for manufacturing "green" products
                                                                                                                                       x        On-site generation (cogeneration/waste heat/fuel
                                                                                                                                                cells/microturbines                                             x
 ETS implemented
                                                          x              Carbon capture technologies (sequestration/utilization)
                                                                                                                                       x        Renewable energy (solar, wind, geothermal, etc.)
                                                                                                                                                                                                                x
 ETS under consideration
                                                          x              Green jobs/training
                                                                                                                                                Conventional generation
                                                                                                                                                                                                                x
 Carbon tax implemented
                                                          x              Plastics and packaging
                                                                                                                                                Energy efficiency, industrial and manufacturing processes
                                                                                                                                                                                                                x
 Carbon tax under consideration                                                                                                                 Plastics and packaging

 Page 19                          EY Green Tax Tracker                   Information current as of: 17 March 2022
• Contact: Nadine Grenouilleau, Pierre de Touchet, Pouya Javadi
 France
 Find the most current version of this tracker on ey.com                                                                                                                             Return to jurisdiction list
                                                                                                                                                                                     J = Jurisdictional level; L = Local level

  Outlook                                                                Sustainability incentives                                             Environmental taxes
                                                                                                                                      J   L                                                                      J       L
Sustainability tax programs have existed in France, mostly at the
national level, since the 1990s, but have expanded in recent years.     Reduce
                                                                                                                                               Water consumption, pollution and effluent charges
                                                                                                                                                                                                               x
France passed an important energy and climate law in 2019 that sets
ambitious environmental goals such as carbon neutrality by 2050         Construction/retrofit of energy-efficient buildings
                                                                                                                                               Recycling, waste and landfills
                                                                                                                                                                                                               x
                                                                                                                                               Electronic waste
and a 40% reduction in fossil fuel consumption by 2030 compared to      Energy efficient process equipment (VFD, refrigeration,
2012.                                                                   furnace, etc.)                                                         Emissions and air pollution
                                                                                                                                                                                                               x
The French environmental tax system is a behavior-based tax
                                                                        Water use reduction technologies                                       Conventional and alternative fuels (vehicles and equipment)
                                                                                                                                                                                                               x
system, which means that it aims to change the behavior of
                                                                        Waste reduction/recycling technologies                                 Energy/electricity generation, distribution and consumption
                                                                                                                                                                                                               x
companies and households by taxing the activities and products
deemed to be the most harmful and by exempting the green
                                                                        Emission reduction technologies                                        Industrial and manufacturing processes
                                                                                                                                                                                                               x
economy. There are multiple taxes on energy consumption (e.g.
                                                                        Switch                                                                 Plastics and packaging
                                                                                                                                                                                                               x
TICFE, TICPE, TICGN) and transportation (e.g. Malus auto). Energy
taxes also have a significant carbon component (i.e. taxe carbone).
                                                                        Alt fuel (EV/LNG/CNG) vehicles/infrastructure
                                                                                                                                      x         Environmental tax exemptions
                                                                        Hydrogen-based fuels                                                                                                                     J       L
There are multiple sustainability incentive programs, including         On-site generation (cogeneration/waste heat/fuel                       Water use reduction and thermal energy production
                                                                        cells/microturbines)
income tax credits, accelerated depreciation and alternative funding.                                                                          Waste reduction/recycling
                                                                        Renewable energy generation (solar, wind, geothermal, etc.)
                                                                                                                                      x        Electronic waste
                                                                        Innovate
                                                                                                                                               Emission reduction
                                                                        Use of recycled materials/investment in recycling equipment
  Carbon pricing
                                                                        R&D machinery for manufacturing "green" products
                                                                                                                                               Conventional and alternative fuel vehicles and equipment
                                                                                                                                                                                                               x
                                                                                                                                                                                                               x
                                                           J     L                                                                             On-site generation (cogeneration/waste heat/fuel
                                                                                                                                               cells/microturbines
 ETS implemented
                                                         x              Carbon capture technologies (sequestration/utilization)

                                                                        Green jobs/training
                                                                                                                                               Renewable energy (solar, wind, geothermal, etc.)
 ETS under consideration
                                                                                                                                               Conventional generation
                                                                                                                                                                                                               x
 Carbon tax implemented
                                                         x              Plastics and packaging
                                                                                                                                               Energy efficiency, industrial and manufacturing processes
 Carbon tax under consideration                                                                                                                Plastics and packaging

 Page 20                          EY Green Tax Tracker                  Information current as of: 9 March 2022
• Contact: Richard Albert, Boris Scholtka, Oliver Wittig, Robert Böhm,
  Germany                                                                                                                            Eric-Holger Glattfeld, Sebastian Helmes

  Find the most current version of this tracker on ey.com                                                                                                                                          Return to jurisdiction list
                                                                                                                                                                                                   J = Jurisdictional level; L = Local level

   Outlook                                                                          Sustainability incentives                                               Environmental taxes
German sustainability tax programs are well established, mostly at                                                                               J    L                                                                        J       L
the national level, and more are continuing to emerge. Sustainability
taxes and incentives are a political focus in Germany and thus the
                                                                                   Reduce
                                                                                                                                                             Water consumption, pollution and effluent charges
                                                                                                                                                                                                                             xx
environment is constantly evolving. There are program adjustments                  Construction/retrofit of energy-efficient buildings
                                                                                                                                                 x
                                                                                                                                                             Recycling, waste and landfills
                                                                                                                                                                                                                             xx
due to technological progress and other environmental needs, as
well as the strong influence of supra-national EU legislation.
                                                                                   Energy efficient process equipment (VFD, refrigeration,
                                                                                                                                                 x
                                                                                                                                                             Electronic waste
                                                                                                                                                                                                                             x
                                                                                   furnace, etc.)                                                            Emissions and air pollution
                                                                                                                                                                                                                             x
There are multiple sustainability incentives available, including
                                                                                   Water use reduction technologies
                                                                                                                                                 x           Conventional and alternative fuels (vehicles and equipment)
                                                                                                                                                                                                                             x
grants or rebates for the purchase of qualifying goods and reduced
carbon taxes or taxes on fuels in certain qualifying situations.
                                                                                   Waste reduction/recycling technologies
                                                                                                                                                 x           Energy/electricity generation, distribution and consumption
                                                                                                                                                                                                                             x
                                                                                   Emission reduction technologies
                                                                                                                                                 x           Industrial and manufacturing processes
                                                                                                                                                                                                                             x
A national emissions trading system (ETS) for fuels (used in the
building and transport sector) began in 2021, expanding to all fuels
                                                                                   Switch                                                                    Plastics and packaging
                                                                                                                                                                                                                             x
in 2023. This measure is part of the German Climate Protection
                                                                                   Alt fuel (EV/LNG/CNG) vehicles/infrastructure
                                                                                                                                                 x           Environmental tax exemptions
Program 2030. There are several additional fuel and environmental
taxes. Current government focus areas are carbon pricing,
                                                                                   Hydrogen-based fuels
                                                                                                                                                 x                                                                             J       L

renewable energy and fuel taxes. Future possible developments
                                                                                   On-site generation (cogeneration/waste heat/fuel
                                                                                   cells/microturbines)                                          x           Water use reduction and thermal energy production
                                                                                                                                                                                                                                     x
include a packaging levy, a plastic tax, change to EU and national
ETS and waiver of the Renewable Energies Act and waivers of energy
                                                                                   Renewable energy generation (solar, wind, geothermal, etc.)
                                                                                                                                                 x
                                                                                                                                                             Waste reduction/recycling
                                                                                                                                                                                                                                     x
                                                                                                                                                             Electronic waste
and electricity tax refunds and exemptions.                                        Innovate

   Carbon pricing                                                                  Use of recycled materials/investment in recycling equipment
                                                                                                                                                 x
                                                                                                                                                             Emission reduction
                                                                                                                                                                                                                             x
                                                                                   R&D machinery for manufacturing "green" products
                                                                                                                                                 x
                                                                                                                                                             Conventional and alternative fuel vehicles and equipment
                                                                                                                                                                                                                             x
                                                                                                                                                                                                                             x
                                                                  J      L                                                                                   On-site generation (cogeneration/waste heat/fuel
                                                                                                                                                             cells/microturbines
  ETS implemented
                                                                x                  Carbon capture technologies (sequestration/utilization)
                                                                                                                                                 x           Renewable energy (solar, wind, geothermal, etc.)
                                                                                                                                                                                                                             x
  ETS under consideration                                                          Green jobs/training
                                                                                                                                                 x           Conventional generation
                                                                                                                                                                                                                             x
  Carbon tax implemented                                                           Plastics and packaging
                                                                                                                                                 x           Energy efficiency, industrial and manufacturing processes
                                                                                                                                                                                                                             x
  Carbon tax under consideration                                                                                                                             Plastics and packaging

Note: Germany operates a national ETS in addition to participating in the EU ETS
  Page 21                          EY Green Tax Tracker                            Information current as of: 1 March 2022
• Contact: Wilson Cheng
 Hong Kong
Find the most current version of this tracker on ey.com                                                                                                                                Return to jurisdiction list
                                                                                                                                                                                       J = Jurisdictional level; L = Local level

  Outlook                                                                 Sustainability incentives                                              Environmental taxes
In November 2020, the HKSAR Government indicated that Hong                                                                             J   L                                                                       J       L
Kong would strive to achieve carbon neutrality before 2050 and will
set out more proactive strategies and measures to reduce carbon          Reduce
                                                                                                                                                 Water consumption, pollution and effluent charges
                                                                                                                                                                                                                 x
emissions to meet this goal. The Government will examine various         Construction/retrofit of energy-efficient buildings
                                                                                                                                       x
                                                                                                                                                 Recycling, waste and landfills
                                                                                                                                                                                                                 x
means to reduce carbon emissions, including explore different types                                                                              Electronic waste
of zero-carbon energy and decarbonization technology, enhance the
energy efficiency of new and existing buildings, introduce more
                                                                         Energy efficient process equipment (VFD, refrigeration,
                                                                         furnace, etc.)                                                x         Emissions and air pollution

stringent energy efficiency standards, promote zero-carbon vehicles
                                                                         Water use reduction technologies
                                                                                                                                       x         Conventional and alternative fuels (vehicles and equipment)
                                                                                                                                                                                                                 x
and green transportation, build large-scale waste-to-energy facilities
and publicly promote low-carbon lifestyles. The HKSAR Government
                                                                         Waste reduction/recycling technologies
                                                                                                                                       x         Energy/electricity generation, distribution and consumption

will also develop green finance to boost investments conducive to
                                                                         Emission reduction technologies
                                                                                                                                       x         Industrial and manufacturing processes

reducing carbon emissions and build a low-carbon economy which is
more resilient to climate change.
                                                                         Switch                                                                  Plastics and packaging
                                                                                                                                                                                                                 x
                                                                         Alt fuel (EV/LNG/CNG) vehicles/infrastructure                           Environmental tax exemptions
In February 2021, the HKSAR Government announced the “Waste              Hydrogen-based fuels                                                                                                                      J       L
Blueprint for Hong Kong 2035”, with two main goals. The medium-          On-site generation (cogeneration/waste heat/fuel                        Water use reduction and thermal energy production
term goal is to gradually reduce the per capita municipal solid waste    cells/microturbines)
disposal rate by 40-45% and raise the recovery rate to about 55%.                                                                                Waste reduction/recycling
                                                                         Renewable energy generation (solar, wind, geothermal, etc.)
The long-term goal is to move away from reliance on landfills for                                                                                Electronic waste
direct waste disposal by creating adequate waste-to-energy facilities.   Innovate
                                                                                                                                                 Emission reduction
                                                                         Use of recycled materials/investment in recycling equipment
  Carbon pricing
                                                            J      L     R&D machinery for manufacturing "green" products
                                                                                                                                                 Conventional and alternative fuel vehicles and equipment
                                                                                                                                                 On-site generation (cogeneration/waste heat/fuel
                                                                                                                                                                                                                 x
                                                                                                                                                 cells/microturbines
 ETS implemented                                                         Carbon capture technologies (sequestration/utilization)
                                                                                                                                                 Renewable energy (solar, wind, geothermal, etc.)
 ETS under consideration                                                 Green jobs/training
                                                                                                                                                 Conventional generation
 Carbon tax implemented                                                  Plastics and packaging
                                                                                                                                                 Energy efficiency, industrial and manufacturing processes
 Carbon tax under consideration                                                                                                                  Plastics and packaging

 Page 22                          EY Green Tax Tracker                   Information current as of: 7 March 2022
• Contact: Rajnish Gupta, Shalini Mathur
 India
 Find the most current version of this tracker on ey.com                                                                                                                                 Return to jurisdiction list
                                                                                                                                                                                         J = Jurisdictional level; L = Local level

  Outlook                                                                   Sustainability incentives                                             Environmental taxes
                                                                                                                                         J   L                                                                       J       L
India has well established sustainability tax programs, primarily at
                                                                                                                                                   Water consumption, pollution and effluent charges
the national level, though there are also local taxes on fuels and         Reduce
incentives granted for clean energy initiatives.                                                                                                   Recycling, waste and landfills
                                                                           Construction/retrofit of energy-efficient buildings
                                                                                                                                                   Electronic waste
There is no formal carbon tax, but there are high taxes on petrol and
diesel, which have increased sharply since 2014 and are possibly the
                                                                           Energy efficient process equipment (VFD, refrigeration,
                                                                           furnace, etc.)                                                x         Emissions and air pollution
                                                                                                                                                                                                                   xx
highest in the world at over 100% (combining the impact of excise
duties and value added taxes). Additionally, there are lower taxes on
                                                                           Water use reduction technologies                                        Conventional and alternative fuels (vehicles and equipment)
                                                                                                                                                                                                                   xx
electric vehicles, only 5% goods and services tax vs. 28% for internal
                                                                           Waste reduction/recycling technologies
                                                                                                                                         x         Energy/electricity generation, distribution and consumption
                                                                                                                                                                                                                   xx
combustion powered vehicles.                                               Emission reduction technologies
                                                                                                                                         x         Industrial and manufacturing processes
                                                                                                                                                                                                                   xx
                                                                           Switch                                                                  Plastics and packaging
There are fiscal measures proposed that would incentivize domestic
manufacturing of ACC batteries, manufacturing of solar panels and          Alt fuel (EV/LNG/CNG) vehicles/infrastructure                           Environmental tax exemptions
other qualifying activities. Also, the government has approved a
proposal to levy a “Green Tax” on old vehicles which are polluting the     Hydrogen-based fuels
                                                                                                                                         x         Water use reduction and thermal energy production
                                                                                                                                                                                                                     J       L
environment. A Production Linked Incentive (PLI) scheme has been
proposed to boost domestic manufacturing capabilities of the
                                                                           On-site generation (cogeneration/waste heat/fuel
                                                                           cells/microturbines)                                          x         Waste reduction/recycling
automobile industry, including electric and hydrogen fuel cell
vehicles.
                                                                           Renewable energy generation (solar, wind, geothermal, etc.)
                                                                                                                                         x         Electronic waste
                                                                           Innovate
                                                                                                                                                   Emission reduction
  Carbon pricing                                                           Use of recycled materials/investment in recycling equipment
                                                                                                                                         x         Conventional and alternative fuel vehicles and equipment
                                                             J         L   R&D machinery for manufacturing "green" products                        On-site generation (cogeneration/waste heat/fuel
                                                                                                                                                   cells/microturbines
 ETS implemented                                                           Carbon capture technologies (sequestration/utilization)
                                                                                                                                                   Renewable energy (solar, wind, geothermal, etc.)
 ETS under consideration                                                   Green jobs/training
                                                                                                                                                   Conventional generation
                                                                                                                                                                                                                          x
 Carbon tax implemented

 Carbon tax under consideration
                                                                           Plastics and packaging                                                  Energy efficiency, industrial and manufacturing processes
                                                                                                                                                                                                                          x
                                                                                                                                                   Plastics and packaging

 Page 23                          EY Green Tax Tracker                     Information current as of: 25 February 2022
You can also read