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PH: DR: For a carbon tax regime covering fossil fuels
A carbon tax regime covering fossil fuels, shipping and aviation could generate additional funds to support Africa’s energy transition, ECA Executive Secretary Claver Gatete said at a carbon (Markets and Development) conference held last week. organized on the sidelines of the Tenth African Regional Forum on Sustainable Development. ARFSD-10) in Addis Ababa, Ethiopia.
“If combined with other policy measures, the carbon tax could help reduce residual emissions that cannot be addressed by carbon credit markets, or subsidies and technologies. Such a tax could allow countries to better meet their commitments to help reduce climate volatility,” said Mr Gatete.
Referring to the ECA’s preliminary studies on the benefits of a carbon tax, Gatete noted that a carbon tax in global supply chains could allow countries such as Egypt and Ethiopia to obtain substantial revenue that could be reallocated to research and development in the aeronautical and marine sectors.
ECA studies also indicate that investment in nature-based solutions in African countries could generate up to $82 billion annually at a price of $120 per ton of CO2 equivalent.
“Renewable energy and carbon sinks from forests and other ecosystems indeed represent a huge potential that countries should use to generate additional income and support ongoing efforts to green economies It is blue that is resistant to weather and disasters. This would allow countries to make further progress towards their sustainability goals,” said Mr Gatete.
Highlighting the importance of decarbonising economies and expanding income streams through clean energy, Albert Muchanga, Commissioner for Economic Development, Trade, Industry and Minerals at the African Union Commission, said that decarbonisation economies through carbon taxes are essential to addressing the climate crisis. However, this requires strong engagement with stakeholders at national and global levels to succeed.
“African economies are small and fragmented, their integration is essential for a unified approach to promote a green movement across the continent,” said Mr Muchanga.
Discussions during the discussion session focused on the four topics of carbon markets: voluntary carbon markets, compliant carbon markets, Article 6 of the Paris Agreement and carbon tax markets. Experts stressed that it is not enough to rely on carbon credit trading alone and that a fair negotiation and allocation of resources is needed to effectively address development differences.
In her contribution to the debate, Ahunna Eziakonwa, regional director of the United Nations Development Program (UNDP), said that climate carbon credits have the potential to address the financial challenges facing the continent, but that agreements in favorable conditions and ensuring that resources are directed. towards development initiatives necessary to achieve this. ensure that climate action in Africa is effective and sustainable.
“More than just understanding the carbon market place and carbon credits, there is a need for experts to advise governments on the different options available in Africa and help them understand the opportunities that the the emergence of carbon markets as a source of development finance and how they work.” , Ms. Eziakonwa said this will require strong communication with producers, consumers, investors and many other stakeholders.
“Evidence-based analysis and engagement from stakeholders, including policy makers, investors and civil society organizations is needed to implement the carbon tax. »
Sharing key findings on carbon emissions in the shipping industry, Jan Hoffmann, Head of Trade Logistics Branch, UNCTAD Technology and Logistics Department, said climate change has a disproportionate impact on small island developing States and coastal countries.
“Carbon dioxide emissions have increased by 21% in the last ten years in the shipping sector, which is a major concern in African countries. Africa needs alternative fuel to be competitive »he declared.
“For African countries to become alternative fuel suppliers, it is necessary to invest in infrastructure and trade to offset the higher costs of climate change mitigation.”he added.
Explaining why blue and green economies are important for Africa to mitigate climate change, James Kairo, a senior researcher at the Kenya Institute of Marine and Fisheries Research, said mangrove forests and other blue carbon ecosystems are critical to the SDGs to achieve, especially SDG14, because they are. providing vital habitat for fisheries and supporting biodiversity.
However, Mr. Kairo said these ecosystems are under threat due to lack of awareness, capacity building and resource mobilization. To address this, we must prioritize the protection and restoration of these ecosystems.
