In the face of the increasingly evident impact of the climate crisis on the environment, economy, and society, a clear consensus is emerging: a more concerted effort is imperative, particularly from the business sector. In this context, taxation assumes a pivotal role. Tax departments possess a unique position, often having valuable insights into a company’s supply chain, which enables the formulation of enduring, value-driven strategies. Consequently, the alignment of tax policies with a company’s sustainability framework gains paramount significance. 

Taxation is an inherently intricate and multifaceted discipline. When combined with sustainability regulations, financial and non-financial compliance requirements, and the various components of a sustainability strategy, the complexity increases substantially, presenting a great challenge for tax teams. 

To address this challenge, WTS Global has established the Hub on Sustainability and Tax, which brings together experts from various tax domains domains of taxation as well as from other areas, such as lawyers, engineers and economists. Their collective expertise aims to offer invaluable support to in-house tax professionals, aiding them in comprehending and complying with the evolving landscape of obligations. 

Our global offerings focuses on: 

• Collaborative expertise: Our network assembles experts across jurisdictions and tax domains to address intricate tax matters resulting from evolving regulations and codes in the sustainable transition. 
• Policy monitoring: We constantly track policy advancements and assess their potential implications for corporate operations and taxation, including initiatives like the EU Carbon Border Adjustment Mechanism (CBAM). 
• Continuous knowledge expansion: Through participation in and organisation of conferences and events, we continually expand our understanding and expertise at the nexus of sustainability and taxation. 
• Stakeholder engagement: We engage with diverse stakeholders, including in-house tax experts, policy makers, and NGOs, to foster a deeper comprehension of the evolving tax landscape and to facilitate the exchange of insights. 
• Key focus areas: We have identified four core domains that are rapidly evolving, both in Europe and beyond:        1. Carbon Pricing Mechanisms (with a primary focus on CBAM)
          2. Taxation and Incentives for Renewable Energies and E-Vehicles
          3. Environmental Taxes and Levies, including Plastic Packaging Tax
          4. Sustainability & Transfer Pricing  

Our Comprehensive Services 

1. In-depth solutions for core domains: We offer a wide range of services tailored to the four key focus areas, ensuring our clients receive relevant advice.
2. Beyond the core: Our expertise extends well beyond these four domains, enabling us to cater to diverse needs and challenges. Below are some examples of WTS Global’s services in the area of Sustainability and Tax:  

Sustainability & Tax Services: 

Carbon pricing 

• CBAM 
• EU ETS 
• National carbon pricing schemes 
• Carbon taxes 

• Voluntary carbon pricing mechanisms 

Energy and electricity Tax 

• Tax incentives for Renewables Energy Sources 
• Hydrogen Tax 
• Carbon Capture and Storage Tax Credits 
• Excise duties on energy and electricity 
• EU Solidarity Contributions 

 ESG Due Dilligence 

• Corporate Sustainability Due Diligence Directive 
• EU Taxonomy 

 Green/Environmental Taxes 

• Plastic Packaging Tax 
• Consumption taxes 
• Environmenta levies 
• Excise Duty Directive 

 State Aids 

• New technologies 
• FiT, Renewables 
• CfD, CCfD 

 Tax Transparency and Reporting 

• GRI 207 
• CbCR 
• Tax Control Framework 
• Tax Policy 
• OECD BEPS 

The services showcased above are merely examples and do not encompass the full range of offerings provided by WTS Global.