The Institute of Climate and Environmental Governance (ICEG) has urged the government to intensify public awareness to inform citizens of the environmental benefits of reducing emissions.
This suggestion comes after the Ghana Revenue Authority (GRA) announced the commencement of the Emissions Levy Act, 2023 (Act 1112), which imposes a levy on carbon dioxide equivalent emissions on internal combustion engine vehicles.
In a statement signed by Kwesi Yamoah Abaidoo, Policy Lead, Climate Finance and Energy Transition, ICEG believes that the introduction of this levy is crucial for Ghana’s energy transition agenda in attaining net-zero targets and would align with both environmental objectives and the socio-economic well-being of the citizens and industries in Ghana, thus, citizens must be educated on that.
He lamented that ICEG lacks commitment by the government to invest revenue that will be accrued from the Emission Levy, therefore, suggested that the government set up an Emission Fund to ensure a proper accountability mechanism that ensures judicious allocation of funds generated.
“Despite the progressive nature of the Levy, ICEG is concerned about the apparent lack of commitment by the Government beyond the imposition of the Levy, to investing the expected revenue on financing green infrastructure”, Abaidoo suggested.
ICEG further noted that the government should set up an Emission Fund to ensure proper accountability.
“Proceeds accrued should not be deposited into the Consolidated Fund. The government should consider setting up an Emission Fund to ensure a proper accountability mechanism that ensures judicious allocation of funds generated. Call on the Government to slowly implement the Levy and put up the necessary institutional infrastructure for effective implementation and use of revenue”, a portion of the release read.
ICEG acknowledged the economic impact on motor vehicle owners, calling on the government to intensify public awareness to inform citizens of the environmental benefits of reducing emissions.
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ICEG Statement on Emission Levy