Research and policy think tank, the International Perspective for Policy and Governance (IPPG), has called on the government to prioritize transparency and accountability in implementing the Emissions Levy Act, 2023 (Act 1112).
According to IPPG, ensuring transparent revenue allocation and establishing rigorous verification mechanisms for reported emissions are essential for the law to achieve its environmental and economic goals.
“The success of the Emissions Levy Act hinges on transparent implementation,” stated IPPG in its latest research report, From Policy to Practice: An In-depth Review of Ghana’s Emissions Levy Act. The law passed in February 2023, imposes a levy on carbon dioxide equivalent (CO2e) emissions from sectors including construction, manufacturing, and energy, and gasoline and diesel vehicle emissions.
It forms part of Ghana’s Environmental Fiscal Reform under the Medium-Term Revenue Strategy (MTRS 2024-2027).
IPPG’s report emphasizes that the government must publish detailed inventories of companies subject to the levy, their emissions levels, and regular updates on how the revenues are being allocated. “Without transparency, the levy risks being undermined by public mistrust and a lack of accountability,” the report warns.
A key concern raised by IPPG is the self-reporting requirement outlined in the law. Companies must declare their emissions, but IPPG cautions that without clear guidelines and a dedicated verification body, the accuracy of this data could be compromised.
“Self-reporting opens the door to potential underreporting or inaccuracies due to a lack of standardized methods,” said Seth Owusu-Mante, co-author of the report. This could lead to unfair taxation and compromise the levy’s intended environmental outcomes.
The report also highlights challenges within Ghana’s transport sector. While the levy on internal combustion engine (ICE) vehicles is intended to reduce pollution and promote cleaner transportation, IPPG points out that high costs and limited financing options for electric vehicles (EVs) make them inaccessible to many Ghanaians.
“The government needs to introduce supportive measures, such as subsidies for EVs and better financing options, to make cleaner alternatives more viable,” suggested Reginald Nii Odoi, Esq., co-author of the report.
In addition, the think tank advocates for amendments to the law to include a dispute resolution mechanism, arguing that such provisions would enhance the Act’s effectiveness by streamlining grievance resolutions.
The full report outlines how Ghana can leverage the Emissions Levy Act to meet its greenhouse gas reduction targets and improve air quality while promoting sustainable economic development.
However, as IPPG stresses, success will depend on transparent governance and robust verification practices.
