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The European Commission has introduced a bold new Recommendation on Tax Incentives aimed at accelerating the EU’s clean industrial transition, reinforcing its ESG agenda and long-term carbon neutral strategy. Launched under the Clean Industrial Deal (CID), the proposal outlines tools to drive private investment in clean technologies and industrial decarbonisation, supporting the EU’s goal of achieving net-zero emissions by 2050.
Key Highlights:
Strategic Principles:
The measures fall under defined EU state aid rules, particularly CISAF Sections 5 and 6, and, where applicable, Commission Regulation (EU) No 651/2014 for broader sustainability projects like zero-emission vehicles.
Economic Impact:
These tax tools are central to the EU’s strategy to create a competitive, investable, and resilient industrial ecosystem. By lowering financial barriers, the Commission empowers businesses to lead the green transition and level the playing field for sustainability-focused companies.
EU Member States are expected to adopt and implement these incentives promptly, with progress reporting and best-practice sharing coordinated by the Commission.
This move solidifies tax policy as a catalyst for advancing ESG performance and fulfilling the EU’s carbon neutral strategy.
Source :
https://esgnews.com/eu-commission-proposes-tax-incentives-to-accelerate-clean-industrial-transition/
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