Green Taxation

Green Taxation has become paramount to many undertakings and driven an accelerated redefinition of their ESG (Environmental, Social and Governance) strategies, promoting innovation and sustainable development of their investments and projects, particularly through the adoption of metrics for the reduction of Greenhouse Gas (GHG) emissions.

One of the purposes of Green Taxation is to encourage undertakings to adopt more environmentally neutral behavior and production processes, promoting a reduction in energy dependence on non-renewable sources while also promoting the application of measures that encourage "greener" mobility among citizens, reducing pollutant emissions.

The use of renewable sources, the purchase or use of electric cars, the promotion of energy efficiency in buildings, among others, are or will be replacement movements rewarded by the Green Taxation. Conversely, Green Taxation will increasingly punish products or activities that do not contribute to sustainable development – the tax on plastic bags (to encourage their reuse or the use of other more environmentally friendly materials), the carbon tax applicable to vehicles whose emissions into the atmosphere contain a certain percentage of Carbon Dioxide, (encouraging the use of vehicles with lower levels of emissions by individuals and undertakings) or, more recently, the creation of a carbon tax on sea and air travel aimed at raising revenue for investment in "green sectors" through the Environmental Fund and compensating the impacted municipalities for the costs incurred with cleaning and maintenance actions, are very good examples of this reality.

VdA has been closely following and advising several clients on this new form of taxation. We can anticipate tax issues to which clients should pay particular attention, thereby helping them mitigate associated tax risks and maximize any benefits they can achieve through the activities rewarded by Green Taxation.


  • Support to public and private entities in the creation and adaptation of extra-fiscal schemes that seek to change behavior in favor of the consumption or production of more environmentally efficient goods or services
  • Advice on securing tax-efficient financing for sustainable projects
  • Support to Green Taxation projects in the automotive sector, namely through the conciliation of environmentally friendly fiscal policies by undertakings or business groups in the sector, as well as other green solutions for sustainable mobility
  • Advice on the definition of tax and financial incentives potentially applicable to the real estate sector in connection with buildings’ energy efficiency
  • Advice on carbon taxation, including review of the various value chain segments burdened with energy taxes, assessment of the assumptions of legal and constitutional compliance of environmental and energy taxes, and identification of the tax impacts associated with alternative business structures and anchored in renewable sources
  • Tax advice on the framework applicable to renewable gases, particularly Green Hydrogen and Biomethane, as well as on the range of tax and financial incentives available for different types of investments or activities in this segment
  • Identification of projects and entities that could fall within the environmental sponsorship scheme 
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