9. INDUSTRY, INNOVATION, AND INFRASTRUCTURE

EU Green Deal vs. US Inflation Reduction Act

EU Green Deal vs. US Inflation Reduction Act
Written by ZJbTFBGJ2T

EU Green Deal vs. US Inflation Reduction Act  KPMG Newsroom

EU Green Deal vs. US Inflation Reduction Act

Sustainable Development Goals and Strategic Industrial Programs in the EU and USA

The appetite in the European Union (EU) and the USA to launch strategic industrial programs has significantly increased in the post-Covid era.

European Green Deal

  1. The European Green Deal is a comprehensive set of measures launched by the EU in June 2021 to transform the EU into a modern, resource-efficient and competitive economy.
  2. The EU Green Deal operates mainly with non-tax incentives. However, through the OECD GloBE rules, qualified refundable tax credits (QRTCs) are available, which might be claimed for projects which fit the EU Green Deal program.

Inflation Reduction Act in the USA

  1. In the summer of 2022, the USA enacted the Inflation Reduction Act (IRA) with a similar broad focus. The IRA is addressing inflation by reducing the national debt, healthcare costs and energy costs over the next ten years.
  2. The IRA, on the other hand, explicitly focuses on tax incentives in the form of transferable tax credits (TTCs) through the extension and expansion of numerous energy-related federal income tax credits.

For corporates with plans for innovation, industrialization and/or decarbonization, this means that they have the choice between applying for grants and loans in the EU or for tax credits in the US, depending on their own global growth strategies.

Analysis of Sustainable Development Goals (SDGs) in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

  • SDG 7: Affordable and Clean Energy
  • SDG 9: Industry, Innovation, and Infrastructure
  • SDG 13: Climate Action

2. What specific targets under those SDGs can be identified based on the article’s content?

  • Target 7.2: Increase the share of renewable energy in the global energy mix
  • Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable
  • Target 13.2: Integrate climate change measures into national policies, strategies, and planning

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article mentions the use of tax incentives such as qualified refundable tax credits (QRTCs) for projects aligned with the EU Green Deal program and transferable tax credits (TTCs) for energy-related projects in the USA. The uptake of these tax credits by corporates can serve as an indicator of progress towards the targets related to clean energy, industry innovation, and climate action.

Table of SDGs, Targets, and Indicators

SDGs Targets Indicators
SDG 7: Affordable and Clean Energy Increase the share of renewable energy in the global energy mix (Target 7.2) Usage of qualified refundable tax credits (QRTCs) for projects aligned with clean energy initiatives
SDG 9: Industry, Innovation, and Infrastructure Upgrade infrastructure and retrofit industries to make them sustainable (Target 9.4) Utilization of transferable tax credits (TTCs) for energy-related projects to promote innovation and industrialization
SDG 13: Climate Action Integrate climate change measures into national policies, strategies, and planning (Target 13.2) Adoption of tax incentives for decarbonization efforts as part of national policies

Copyright: Dive into this article, curated with care by SDG Investors Inc. Our advanced AI technology searches through vast amounts of data to spotlight how we are all moving forward with the Sustainable Development Goals. While we own the rights to this content, we invite you to share it to help spread knowledge and spark action on the SDGs.

Fuente: kpmg.com

 

Reporters – Paris’s Catholic Foreign Missions Society under fire over alleged sexual abuse

Join us, as fellow seekers of change, on a transformative journey at https://sdgtalks.ai/welcome, where you can become a member and actively contribute to shaping a brighter future.

 

About the author

ZJbTFBGJ2T