Environmental Taxes and Green Fiscal Policy

What does this mean for you?

Embracing the transition to net-zero carbon

Climate change and sustainability issues are increasingly impacting businesses, investors, consumers, the workforce and governments. Whilst the COVID-19 pandemic has caused widespread disruption, it has also provided momentum and opportunity to rethink how the tax system and fiscal stimulus can drive net-zero action.

Identifying opportunities to permanently lock-in some of the environmental benefits that society has experienced as a result of lockdown measures, and incentivising businesses to meet sustainable objectives is high on the agenda. Governments will increasingly turn to the tax system and fiscal stimulus as a key lever to drive change.

What are the key challenges?

Societal expectations: from assets and investments to products and jobs, businesses are facing pressure from consumers, investors and wider society to show how they are addressing climate-related issues and policies.
Developing tax systems: as governments rethink how taxes can be used to address climate change, CEOs and leaders need to reevaluate their strategies, risks, and business models.
Approach to tax transparency, governance and reporting: as tax transparency frameworks evolve, businesses are grappling with designing and implementing their approach to tax transparency, aligned with their broader sustainability strategy.

How can we help?

It’s more important than ever to understand how environmental tax and green fiscal policy will impact your operations so that you can make informed strategic decisions and take advantage of emerging opportunities. By combining our extensive knowledge advising on the tax system with our sustainability and climate change expertise we’re helping future-proof businesses and governments to be more resilient, agile and sustainable.

Businesses

Evaluating the tax implications of a net-zero commitment and reduction of carbon and plastic footprints.
Providing advice and impact assessment on existing and emerging taxes.
Understanding the risks associated with changes in supply chain due to new and emerging regulations.
Support with sustainable finance / investment: green finance and infrastructure investments.
Processes and governance to reflect changes in environmental taxation, impact on ERP systems.
Economic modelling on the impact of carbon pricing measures.
Environmental strategy and reporting: tax transparency and Environmental, Social and Governance (ESG) reporting, associated internal and external (auditable) reports, including, for example, reporting along the lines of the GRI 207: tax standard and / or a Total Tax Contribution report.

Governments

Evaluating new taxes / tax incentives and redesigning old ones.
Assessments for how climate change and sustainable growth will impact public finances.
Diagnosis and monitoring of industry sectors impacts of tax changes.
Measuring uptake of incentive schemes.