Ireland’s relatively high ranking overall was achieved by our use of tax incentives for a number of green initiatives, such as the offer of accelerated capital allowances for the purchase of certain energy efficient equipment and vehicles.
The tax system in each county was also analysed and ranked under a number of separate green policy areas.
Ireland achieved top ranking in a quartile of countries that were noted as having a medium to high use of tax as a green policy tool and as having a wealth of wind, solar and water resources which help to encourage investment in green technology and green projects.
Ireland ranked 4th in the area of Renewable Energy & Fuels overall.
The KPMG Green Tax Index provides an analysis of green tax penalties and incentives in 21 major countries across Asia Pacific, Europe and the Americas.
A high ranking in the KPMG Green Tax Index means that the government in that country is more active than others in using its tax system to drive sustainable business and achieve green policy objectives. It attributes scores to green tax incentives and penalties according to likely value and potential to influence corporate behaviour. The areas of focus include energy efficiency, water efficiency, carbon emissions, green innovation and green buildings.
Commenting on the survey results Mike Hayes, Head of Energy and Natural Resources, KPMG, Ireland, said
“Ireland’s strong showing in the survey suggests that, in dealing with our current financial pressures, we have not lost focus on the environmental issues likely to influence our future economic performance. We’ve performed very well in a number of categories and have the fundamentals in place to sustain and improve our ranking. Also the emergence of the renewable energy export market between Ireland and the UK will only enhance Ireland’s reputation and ranking even further.
Separately, the Green IFSC (a public/private partnership) has been making great strides in selling Ireland as the Global Centre of Excellence for Green Asset management – no other financial centre has taken such innovative steps and this is likely to lead to a new generation of green financial services businesses locating in Ireland.”