Government Urged to Revisit Emissions Levy to Boost Green Energy Adoption

0
Tax
Tax

Wilfred Neneh Addico, Advisory Partner at Makers and Partners (MAP), has called on the government to reassess the implementation of the Emissions Levy Act, 2023 (Act 1112), arguing that it could serve as a catalyst for the adoption of eco-friendly technologies and green energy.

Speaking at a forum organized by the University of Ghana (UG) Business School Accounting Association in collaboration with MAP, Addico emphasized that taxation is a powerful tool for driving behavioral change, reducing emissions, and generating revenue for national development.

The forum, themed ‘Environmental, Social, and Governance Practices for a Sustainable Future,’ aimed to educate students on the opportunities within the ESG (Environmental, Social, and Governance) sector and guide them on how to align their academic and career paths with global sustainability trends. Addico’s remarks highlighted the urgent need for Ghana to address its carbon emissions, particularly as the country strives to meet its 2050 emission reduction targets.

“Taxes, to a large extent, push people to behave properly,” Addico stated. “Introducing this levy is not just about addressing emissions; it’s about correcting behaviors and generating revenue that can be reinvested into sustainable initiatives.” He pointed out that while multinational companies in Ghana have shown commitment to reducing their carbon footprint, the same cannot be said for many local businesses. Large manufacturing and steel industries, he argued, should be primary targets for the emissions tax, as their operations significantly contribute to environmental degradation.

Addico also proposed that the revenue generated from the levy could fund mitigation activities, ensuring a balanced approach to environmental sustainability. “The goal is not just to tax but to create a system where the funds are used to sponsor projects that offset the damage caused by emissions,” he explained.

The forum also featured insights from Michael Boateng, an ESG and Carbon Trading Consultant, who highlighted the potential economic opportunities the Emissions Levy Act could unlock for young Ghanaians, particularly accounting students. Boateng noted that the law requires companies to submit monthly accounts to the Ghana Revenue Authority, creating a demand for professionals skilled in carbon accounting and auditing. “There’s already an opportunity in accounting and auditing, but carbon marketing, trading, and finance present even greater prospects,” he said. “Students can leverage carbon credits to finance startups or innovate within the green economy.”

Professor William Coffie, Head of the Accounting Department at UG Business School, underscored the university’s commitment to integrating ESG principles into its curriculum. He revealed that every academic program at the university now includes a dedicated course on ESG, reflecting the institution’s efforts to equip students with the skills needed to thrive in a rapidly evolving global industry. “ESG provides stakeholders with a clearer understanding of how educational institutions are preparing the next generation for sustainability challenges,” he said.

The call to revisit the Emissions Levy Act comes at a critical time for Ghana, as the nation grapples with the dual challenges of economic growth and environmental preservation. Addico’s advocacy for a more inclusive and strategic approach to emissions taxation reflects a growing consensus among experts that fiscal policies must align with sustainability goals. By targeting high-emission industries and reinvesting tax revenues into green initiatives, Ghana could position itself as a leader in Africa’s transition to a low-carbon economy.

As the global community intensifies its focus on climate action, forums like the one organized by UG and MAP serve as vital platforms for fostering dialogue, innovation, and collaboration. For Ghana’s youth, the evolving ESG landscape offers not just a chance to contribute to a sustainable future but also to carve out lucrative career paths in an increasingly green world.

Send your news stories to newsghana101@gmail.com Follow News Ghana on Google News