Following the introduction of the emissions levy on Thursday February 1 2024, the Institute of Climate and Environmental Governance (ICEG) has expressed it concerns regarding the levy.
Meanwhile, President Nana Addo Dankwa Akufo-Addo is reported to have directed the suspension of the implementation of the levy.
In a statement, Kwesi Yamoah Abaidoo, the Policy Lead for Climate and Energy and Transition at ICEG, noted that the introduction of the levy would have an economic impact on the disposable income of vehicle owners and the margins of industries reliant on fossil-fuel.
While ICEG considers the levy as a good initiative in promoting environmental sustainability, it has raised concerns on revenue generated being deposited into the Consolidated Fund.
Rather, ICEG believes that an Emissions Fund should be created for the purposes of strengthening transparency and accountability.
Proceeds
The Policy Lead for Climate and Energy and Transition at ICEG further suggested that proceeds from the levy should be invested into green projects such as renewable energy and afforestation projects which could create employment avenues while promoting environmental sustainability.
ICEG also disagreed with the taxation approach on motor vehicles, buses, and coaches. Its position is anchored on the school of thought that different motor vehicles emit CO2 at varying levels depending on the year of make of the vehicle and its maintenance regime.
ICEG recommended that Government slowly implements the Levy and put up the necessary institutional infrastructure for effective implementation and use of the revenue.
It also recommended that government intensifies public education and awareness campaign to inform citizens of the benefits of reducing emissions while encouraging the use of eco-friendly cars by instituting rebates and incentives regimes for owners of low-emission vehicles.
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