EY Green Tax Tracker 1 April 2022
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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 TrackerEY 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 Tracker45 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 TrackerPage 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
xxxxxxxxxxItaly
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
xxxxxxxPage 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 2022You can also read
