The introduction of a 'Help to Insulate' scheme, the promotion of Ireland as a 'green finance hub' and the use of environmental tax incentives are among the proposals being put forward by PwC in its Green Pre-budget submission.
The measures are aimed at incentivising consumers and businesses to tackle climate change rather than focusing solely on penalising behaviour.
PwC says the ideas presented would "promote investment, encourage job creation and contribute to socio-economic prosperity".
The submission points to the high up-front costs that householders face in improving their home energy efficiency which, it says, may be deterring them from carrying out projects.
It proposes that consideration be given to a 'Help to Insulate' scheme in order to incentivise households to retrofit their properties.
The associated upskilling of workers to carry out the projects, it says, would stimulate economic activity.
The report also proposes that consideration be given to the introduction of more specific measures and the expansion of existing tax relief measures for public transport costs as well as for hybrid and electric vehicles.
The submission calls for the promotion of Ireland as a "green finance hub" by introducing taxation measures to attract ESG Funds to Ireland.
ESG Funds are are portfolios of investment products for which environmental, social and governance factors have been integrated into the investment process.
"Tax policy will play a major role not only influencing behaviour towards a sustainable economy, but also encouraging investment and creating jobs in the right areas while boosting a green COVID-19 recovery," Peter Reilly, Tax Policy Leader, PwC Ireland said.
"Budget 2022 offers a clear opportunity to allocate resources to build back greener and put Ireland on a trajectory towards achieving its ambitious climate targets," Rebecca Greene, Energy and Sustainability Tax leader at PwC Ireland, added.
