If the EU still wants to achieve its Fit-for-55 goals, further massive increases in green investment by the private sector are necessary. A major obstacle to this has been identified as the inadequate availability of finance, which results in a higher cost of capital and, by extension, lower investment volumes. This article explores whether tax policy measures can help to contribute to addressing this problem. The focus is specifically on the Anti-Tax Avoidance Directive’s (ATAD’s) interest limitation rule, which can adversely hamper green investments. Our investigation first concentrates on ascertaining the interpretational boundaries of this provision regarding supporting green investment, after which we provide two suggestions as to how EU direct tax law could be more effectively coordinated with EU climate law – especially the EU taxonomy.
European Business Law Review