2022-05-30-安永_中国_-EY_Green_Tax_Tracker_April_2022_53页_1mb

EY Green Tax Tracker Summary

• Major Findings:
  Sustainability tax measures are widely adopted by governments globally to reduce emissions, meet carbon neutrality goals, tackle climate change, and generate revenue. These policies vary significantly across jurisdictions, targeting areas like carbon pricing, environmental taxes, incentives for sustainable behaviors, and tax exemptions.

Sustainability Incentives (Reduce, Switch, Innovate)

• Categories:
  Incentives aim to reduce resource consumption, switch to renewable energy, and encourage innovation in low-carbon products and processes. Examples include tax credits, grants, and accelerated depreciation for green technologies.
  • Reduce: Promotes energy efficiency (e.g., renewable energy generation, tax credits for low-carbon manufacturing).
  • Switch: Encourages renewable energy adoption (e.g., EV infrastructure incentives, carbon pricing).
  • Innovate: Supports R&D for low-carbon innovations (e.g., carbon capture, hydrogen technologies).

Environmental Taxes

• Types:
  Environmental taxes include carbon taxes (globally), pollution-related taxes (e.g., GHG emissions, noise, waste), and energy-related taxes (e.g., petrol, electricity).
  • Exemptions: Certain jurisdictions provide tax breaks for eco-friendly activities (e.g., recycling, green job training).
  • Common Issues:
    • Tax havens reliance in some regions.
    • Data inconsistencies in collection (e.g., black market transactions).

Jurisdictional Highlights

• EU: Leading in consistency and scope, with the EU ETS and carbon border adjustments under discussion. Future green tax plans are expected, including ETS modernization and sustainable shipping incentives.
• Canada: Harmonized federal and provincial carbon pricing frameworks. Focus on environmental assessments and plastics initiatives.
• South Africa: Carbon tax introduced but low penetration rate due to fossil fuel dominance. Plans for air pollution taxes and potential congestion fees.
• India: High fuel taxes, exemptions for electric vehicles, and incentives for domestic manufacturing (e.g., PLI schemes). Still lacks formal carbon pricing.
• Vietnam: New environmental protection laws introduced, consistent with EU policies, focusing on energy storage and green tax stability.

Carbon Pricing & Emissions Trading

• Global Implementation: South Africa, UK, Ireland, and Norway have carbon taxes or emissions trading schemes (ETS).
• Notable Examples:
  • Canada: Pan-Canadian framework allowing provinces to adopt their own pricing systems.
  • EU: Binding climate targets with EU-wide carbon leakage risks addressed through proposals like the Carbon Border Adjustment Mechanism.
  • South Korea: Carbon tax planned, though ETS presents challenges.

Recommendations

• Governments are introducing green taxes to drive sustainable behavior, reduce consumption of harmful resources, and incentivize the transition to renewable energy and clean manufacturing processes.
• Global coordination is needed to tackle climate change through consistent carbon pricing and extended measures like the EU-style Carbon Border Adjustment Mechanism (CBAM).
• Businesses should map green tax incentives, contribute to a circular economy, and adopt compliance solutions early to avoid reputational harm.

Datasets & Accuracy

This report is based on high-level information from jurisdictional professionals (effective as of March 8, 2022 for some jurisdictions, latest being Vietnam March 24, 2022). It may not reflect updates beyond March 2022 in all regions. For in-depth legal analysis, consult jurisdiction-specific contacts.

Note: Data inconsistencies can arise from discrepancies in reporting non-tax data (e.g., evasion) and variable mechanisms across regions.