Environmental taxes, incentives, subsidies and grants

The regulatory landscape is changing rapidly. While the majority of evolving Environmental, Social and Governance (ESG) tax measures relate to the environment, tax has also become a key component in the ‘S’ of ESG and it also plays a significant part in the ‘G’. Governments across the globe are increasingly introducing tax measures, incentives and grants that aim to influence behaviours that are impacting the environment and contributing to climate change; increase social awareness of tax and “paying your fair share; and promote the implementation of appropriate tax risk management and governance frameworks.

Within this context, we are seeing the implementation of various environmental taxes, such as new carbon and plastic taxes and the expansion of the scope of existing carbon pricing systems. Financial transaction and wealth taxes are being used to fund social programs and reduce income inequality, and tax transparency is increasingly becoming a key metric in investment decisions and as a measure of sustainability. Navigating and remaining abreast of the rapidly-evolving ESG tax landscape can be challenging. 

KPMG experts can help you not only comply with global ESG metrics, but can work within a multidisciplinary team to ensure taxes are considered as part of an holistic ESG project whether around supply chain, workforce, or other business transformation.

Companies must not only remain compliant but should also take advantage of the accompanying incentives and grants available to them where there opportunity to support green investments or investments that promote social objectives. Many governments are increasing the amount of tax incentives and other subsidies and grants available. KPMG has a dedicated global grants & incentives team to explore and support applications to various funding mechanisms, reducing the final cost of ESG projects. Our global team has in-country subject-matter specialists, and together we can help you understand and monitor regulatory developments, and critically assess the related opportunities and underlying obligations. We can help you remain abreast of these developments to ensure that your business is ideally positioned in this ever-changing environment.

KPMG's ESG tax tracker tool, provides insight into the global ESG and sustainability landscape for taxes, incentives and grants. The ESG tax tracker tool is an information repository that contains information about environmental taxes and incentives, carbon pricing, social taxes and incentives. It is regularly updated, free to access and is based on the global ESG regulatory database, covering more than 70 countries and leveraging our global network and ESG specialists. Should you wish to obtain information about a jurisdiction that does not appear in the database or discuss any of the items listed in more detail, please contact your local designated KPMG advisor or one of our environmental taxes, incentives, subsidies and grants specialists.