Africa considers carbon taxes to fight climate change

African leaders have put forward a joint proposal for a global carbon tax regime, as outlined in the Nairobi Declaration, concluding the three-day Africa Climate Summit in Kenya's capital. The declaration emphasizes the need for major polluters to allocate more resources to assist less affluent nations. African heads of state intend to use the declaration as the foundation for their negotiating stance at the COP28 summit in November 2023.

The Africa Climate Summit primarily focused on discussions related to mobilizing financing to cope with increasingly severe weather conditions, conserving natural resources, and advancing renewable energy. Africa is identified as one of the most susceptible continents to the effects of climate change, yet it receives only about 12% of the approximately $300 billion (£240 billion) in annual financing required, according to researchers.

The Nairobi Declaration calls on global leaders to support the proposal for a comprehensive carbon taxation regime, encompassing a carbon tax on fossil fuel trade, maritime transport, and aviation. The regime may also include a global financial transaction tax. Human rights activist Graça Machel views the declaration as a significant step forward, emphasizing Africa's role as a player offering opportunities, investments, and solutions rather than merely seeking assistance.

The declaration contends that such measures would secure substantial financing for climate-related investments while shielding the issue of tax increases from geopolitical and domestic political pressures. Although approximately two dozen countries currently impose carbon taxes, the concept of a global carbon tax regime has encountered limited traction.

Kenya's President William Ruto, referencing past proposals in the European Union for a financial transaction tax, expressed the need for global cooperation.

During the summit, international governments, development banks and private investors committed a combined $23 billion to green projects. This includes significant contributions to a major carbon markets initiative. However, African leaders acknowledge that these investments only scratch the surface of the continent's financial requirements, advocating for more systemic changes.