Industrial decarbonisation

As a result of the Paris Climate agreement, industries have commited to decarbonise their emissions in order to the reach the climate target. As transport is getting more and more electrified, the demand for electric power is increasing. The power production sector therefore needs to speed up its decarbonisation, something that can be achieved e.g. by installing renewable power production plants or entering into power purchasing agreements with renewable power producers.

For industries the path towards decarbonisation is challenging as well. Often this requires innovations, capital investments or changes into the core of the business. All of this might come with questions like;

How to deal with energy tax? As energy tax in general is not recoverable and thus forms a cost (cashout). Optimisation and refunds however are in some situations possible
What does this mean for my indirect tax? Indirect tax aspects of e.g. new supply chains should be determined. What is the VAT treatment of e.g. all transactions within the e-Mobility supply chain, especially in cross-border situations
How to maintain a good liquidity?

PwC can help you optimise your energy tax and handle your questions. With our deep local expertise and the scale of PwC’s connected global network, we have access to all relevant expertise and knowledge.

We also perform studies on the impact of national taxes on greenhouse gas emissions for the local (Dutch) economy. We have done so for example for the ministry of climate and economic affairs in the Netherlands. We are also working with multiple companies in identifying fiscal incentives for e.g. R&D projects, that will ultimately lead to the decarbonisation of industrial processes (e.g. innovation box, tax credits, tax exemptions and reductions, waivers of withholding taxes, accelerated depreciations).

Carbon Markets

The carbon markets globally are rapidly changing and the expectation is that prices will increase over the next years and decades. Carbon credits can help organisations with their ‘net zero’ strategy. For some parties carbon credits will be a cost and for others it can also create new revenue streams or opportunities for funding. We see an increasing interest around strategic questions on carbon credits and carbon trading and all its relevant legal, tax and financial implications. Check our download and get high level guidance in the maze called carbon credits and how these can be used in your organisation.