By Albert Oppong-Ansah
Accra, Dec. 18, GNA – Experts in the environmental sustainability and transport sector have commended government’s proposal for a levy of GHS100 (USD8.35) annually on owners of petrol and diesel vehicles – vehicles on Internal Combustion Engines (ICE) towards adoption of eco-friendly energy sources for vehicles.
They have, however, advised the government to make the tax progressive to ensure its efficiency.
The proposed levy is a core part of the country’s broader global commitment to climate-positive actions and carbon offsetting under the Paris Agreement on Climate Change.
The transport sector is a major fast-growing source of Greenhouse Gas (GHG) emissions and is the single largest contributor, responsible for 48 per cent of the total energy emissions and 17 per cent of the total national emissions, according to the Energy Transition Policy.
In 2016, for instance, mobile combustion emissions summed up to 7.2 Metric tons of carbon dioxide equivalent (Mt CO2e) in Ghana.
The cumulative impact of Ghana’s total Carbon Dioxide (CO2) emissions from road transport alone between 2000 and 2016 was 59.9 per cent.
Medium and Heavy-Duty Vehicles, for instance, constitute a major source of local air pollutants, including nitrogen oxides, carbon monoxide, hydrocarbons, and particulate matter.
Accra has over the years recorded pollution five to eleven times higher than the World Health Organisation’s recommended limits.
The use of fossil fuels in vehicles place health and economic costs on society, according to the country’s new Electric Vehicle Policy.
Not only that but traffic noise is associated with sleep problems, tiredness, headaches, high blood pressure, hormonal effects, stress and increased risk of heart attack according to the World Health Organisation.
While acknowledging the importance of the proposed tax, Mr Desmond Appiah, a Sustainable Development Expert, said: “The already developed vehicle emission standards must be promulgated and implemented such that vehicles in a less emitting range pay less.
“So, for instance on a scale of one to 10 if one’s vehicle emission after testing is ranked below three, the owner is charged for instance GHS 20.00, while those beyond emission level eight pay GHS 2000.00.”
Such an approach, he said, would become an incentive for vehicle owners to embrace good vehicle maintenance practices to reduce emissions.
Mr Appiah said with such a progressive system in place, people would be encouraged to buy cars that polluted less and alternatively buy electric vehicles.
However, he noted that the proposed tax did not clearly support government’s intention to ban in 2045 the use of ICE vehicles by the newly outdoored Electric Vehicle Policy as there was the likelihood the country would see influx of fossil fuel using cars as a reaction to policies in other countries.
“Ghana will likely become a dumping ground of ICE vehicles from the global north if care is not taken,” he said.
He said major vehicle manufacturing countries and many countries in the European Union had approved a deal that would lead to the phaseout and sales of new fossil fuel cars by 2035, with a final green light by energy ministers.
Already, the 27-nation bloc has joined more than a dozen other nations and have set deadlines for ending sales of new cars with ICE which emit toxic gasses that are a major driver of climate change.
Burning fossil fuels for energy is by far the biggest cause of climate change. It is also the engine of modern life – even with the growth of renewables, fossil fuels produce around 80 per cent of the world’s energy, a Reuters report said.
The just ended COP 28 urges parties to cut 43 per cent by 2030, to limit global warming to 1.5 Degree Celsius, in line with the Paris Agreement (PA)- a legally binding international treaty on climate change.
Ghana, a signatory of PA, plans to decarbonise the energy sector by 2027, according to its Energy Transition Policy.
Dr. Bob Manteaw, a Senior Research Fellow and Lecturer at the Centre for Climate Change and Sustainability Studies of the University of Ghana supports the proposed eco levy and its objective.
But he wants its name changed from eco levy to climate change tax.
“Everyone’s activity contributes to emission from cooking, washing to transportation so it is just for the levy to be introduced,” he said.
He, however, proposed that the levy should be pegged between GHS 10 to GHS 50 for all and sundry to pay and not only ICE vehicle owners.
Mr Godfred Abulbire, the General Secretary of the Ghana Private Road Transport Union (GPRTU), commenting on the proposed eco levy, describes it as pre-mature.
“The conditions attached are harsh. The taxes are too much,” he said.
He explained that the goal of encouraging a switch to electric vehicles in the medium to long term was good, however, the structures needed to be put in place before rolling out such a policy was limited.
“If my members commute between Accra-Kumasi-Tamale by electric buses now, will they get a charging point along the route?” He questioned.
Dr Osman Tahidu Damba, a Senior Lecturer of the Faculty of Agriculture of the University for Development Studies, Nyankpala, said the proposed levy was a scheme by the government to generate revenue.
“It is not correct that they want to incentivise the adoption of eco-friendly energy sources for vehicles.
“Vehicle owners, especially those in the commercial category will pass the tax on to their clients, especially traders. This will increase the cost of goods and services compounding the already hardship,” he said.
Asked about the country’s global emission reduction commitment, Dr Damba said high levies on cost of fuel and overaged vehicles at the port were enough emission reduction measures.
As of 2022, Ghana has over 3.2 million registered vehicles with nearly all vehicles in Ghana running on diesel fuels (28 per cent), petrol (61 per cent) and Liquified Petroleum Gas (11 per cent), according to the country’s new electric vehicle policy.
GNA
This story is a collaboration with New Narratives. Funding was provided by the Clean Air Fund. The funder had no say in the content.