Sustainability and Green taxes affecting business-as-usual: The EU Role of Cyprus

As Cyprus prepares to undertake the Presidency of the Council of the EU in January 2026, the EY Academy of Learning and Development recently organised a seminar focusing on Sustainability and Green Taxes: the expected impact on businesses worldwide.

According to a press release from the Academy, the event aimed to educate businesses about the implications of EU compliance requirements and fiscal levies on both local and international entities, particularly in relation to Environmental, Social, and Governance (ESG) criteria and sustainability initiatives. During the event, discussions revolved around the aftermath of COP28 and the January 2024 Davos Economic Forum, with emphasis on environmental measures' neutrality and the next steps regarding Article 6 of the Paris Agreement, including carbon credit generation and potential benefits for Cyprus.

Distinguished speakers included Marilena Raouna, Deputy Minister of European Affairs, Republic of Cyprus, Shawn Maher, EY Global Vice Chair, Public Policy, Obama Administration Senior Advisor (enclosed message in the link), and Kasia Klaczynska Lewis, Partner, EY Poland, EU Green Deal.

The agenda of the event covered various topics including CSRD Reporting and Sustainable Finance, Cyprus's role in shaping EU sustainability policy, EU Tax Policy Tools affecting global trade, and Cyprus Tax Reform and its green initiatives.

Among others, Stavros Violaris, Partner, Sustainability Leader, EY Cyprus, said: “Sustainability issues will remain high on the agenda for the coming years and will continue to affect all business sectors globally and in Cyprus. Understanding the challenges of the green transition and developing the skills and capabilities to harness the opportunities ahead is critical for organisations and professionals in Cyprus. It is therefore natural the EY Academy should focus on this issue, especially in view of the forthcoming Cyprus Presidency of the EU Council.”

On his part, Simos Simou, Senior Manager, Environmental Tax Controversy Leader, referred that "At this point in time, organisations need to environmentally comply (DECARBONISE) or explain (PAY TAXES)."

Shawn Maher, EY Global Vice Chair, Public Policy, Obama Administration Senior Advisor said that: "The question is whether these actions will meet the moment and steer our world off its current path of climate ruin onto a path of recovery and restoration."

In her presentation, Kasia Klaczynska Lewis, Partner, EY Poland EU Green Deal, stated "In today’s world, embracing sustainability translates into a competitive advantage."

Panos Choutris, Senior Manager, Climate Change & Sustainability Services, argued that "Gaining early insights into a company's current sustainability status can facilitate a smoother transition towards more sustainable practices in the future."

On her part, Constantina Charalambidou, Senior Manager, Financial Accounting Advisory Services, referred to the fact that "Corporate Reporting evolves in times of change and uncertainty. To meet the growing demand for sustainability information from regulatory authorities and stakeholders, businesses will need to adapt their reporting processes, ensure compliance with the new standards, strengthen data management, and combine financial and sustainability reporting into a coherent corporate report."

Finally, Christine E Kowal, Director, EY Academy of Learning and Development, said "In light of Cyprus taking a leadership role in the EU sustainability agenda, we are very excited and proud to host this important event for our clients and key stakeholders across the region."

The seminar provided invaluable insights into the evolving landscape of sustainability and green taxes, offering practical considerations for businesses aiming to navigate these challenges effectively. Within the audience of the live streaming and video on demand, were high ranked executives from international groups, academia, public authorities, professional associations from more than 100 countries.

Feel free to watch a video clip from the conducted session by clicking on the link.