European Green Deal

Is your organization prepared for the proposed legislative changes?

Is your organization prepared for the proposed legislation changes?

The path forward for the European Green Deal

The European Union (EU) has dedicated itself to sustainable development and has set a very ambitious target of making Europe the first climate-neutral continent by 2050. To achieve this ambition, the EU introduced the European Green Deal in 2019, which consists of dedicated regulations, strategies and funding mechanisms that address eight major policy areas.

As part of the European Green Deal, the European Commission proposed the first set of targets to be met by 2030 under the “Fit for 55 Package” banner. These legislative proposals, designed to align the EU’s climate, transport, land use, energy and taxation policies with its 2030 milestone target of cutting greenhouse gas emissions by 55% when compared to 1990 levels, will likely impact many sectors and industries in the EU, including business models, financial instruments and global supply chains.

How KPMG professionals can help you

The insights and regular updates on regulatory developments provided by our global network of ESG leaders should assist leaders and businesses in identifying and responding to these changes as they prepare to comply with the EU’s rapidly evolving regulations and legislation. Our professionals can provide advice across the European Green Deal legislative packages including some of the most notable regulations reforms, which include the introduction of a Carbon Border Adjustment Mechanism (CBAM) and a plastics levy; the revision of the EU’s current Emissions Trading System (ETS) and Energy Taxation Directive (ETD); and the establishment of various “Just Transition” funding mechanisms (such as the Social Climate Fund, Modernisation Fund and Innovation Fund).

Next Generation EU

#NextGenerationEU is the “investment firepower” for the EU’s green transition. This €806.9 billion temporary recovery instrument, which is set to run until 2026, is intended to support the European economy from the coronavirus pandemic and build a greener, more digital and more resilient future.

From funding opportunities to project implementation, KPMG’s Tax Global Credits, Grants & Incentives Services practice can help you design and implement an effective funding strategy given your business’ needs on the journey to net zero.