Ghana recently announced a new policy to impose a levy on carbon emissions from vehicles, mining, and oil and gas sectors. The levy, which will take effect from February 1, 2024, is intended to reduce greenhouse gas emissions and generate revenue for environmental projects.
However, the policy has been met with criticism from various stakeholders, who argue that it is unfair, ineffective, and counterproductive.
Impact On Poor and Vulnerable
One of the main criticisms of the levy is that it will disproportionately affect the poor and the vulnerable, who rely on low-cost and inefficient modes of transport and energy. The levy will increase the cost of fuel, electricity, and goods, which will erode the purchasing power and living standards of millions of Ghanaians.
Lack of Incentives
Moreover, the levy will not provide any incentives or support for the adoption of cleaner and more efficient alternatives, such as public transport, renewable energy, and energy efficiency measures.
No Impact On Emissions
Another criticism of the levy is that it will not have a significant impact on reducing emissions, as Ghana’s contribution to global warming is negligible. According to reports, Ghana’s total carbon dioxide emissions in 2020 were 18 million metric tons (0.6%), which accounted for only 0.06% of the world’s total.
Therefore, even if Ghana were to eliminate all its emissions, it would not make a dent in the global climate crisis. Furthermore, the levy will not address the root causes of emissions, such as deforestation, land degradation, and waste management.
Increasing Cost of Business
A third criticism of the levy is that it will undermine Ghana's economic development and competitiveness. The levy will increase the cost of doing business and production in Ghana, which will reduce its attractiveness as an investment destination and a trading partner.
In conclusion, Ghana's new emissions levy is a flawed policy that will have negative social, environmental, and economic consequences.
The policy should be reconsidered and replaced with a more holistic and equitable approach to addressing climate change. Such an approach should include promoting low-carbon development, enhancing climate resilience and adaptation, and participating in international cooperation and solidarity.
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