Côte d’Ivoire launches groundbreaking carbon tax strategy to curb emissions
The Ivorian government is set to revolutionize its environmental policy with a national carbon taxation strategy, spearheaded by the Ministry of Economy, Finance and Budget. This ambitious initiative aims to curb rising greenhouse gas (GHG) emissions while accelerating the transition toward a greener economy.
A proactive response to climate and economic challenges
The detailed strategy reveals a troubling paradox: despite robust post-Covid economic growth, Côte d’Ivoire has seen a sharp rise in carbon emissions. Between 1990 and 2024, the country’s carbon intensity increased from 0.15 to 0.18 tons per thousand dollars of economic output. This surge stems from a heavy reliance on fossil fuels, expanding transportation networks, industrial growth, and emission-heavy agricultural practices.
Government officials warn that climate change poses an immediate threat to the national economy. Rising temperatures, erratic rainfall patterns, and environmental hazards are already disrupting key sectors—most notably agriculture, a cornerstone of employment and GDP.
Aligning with global climate commitments
This reform underscores Côte d’Ivoire’s commitment to international climate agreements. Under its updated Nationally Determined Contribution (NDC 3.0), the country aims to cut greenhouse gas emissions by 33.07% independently, and up to 74% with international support, by 2035.
The strategy also aligns with fiscal reforms agreed upon with the International Monetary Fund (IMF), particularly within the Resilience and Sustainability Facility (RSF). Developing a locally tailored carbon tax is a central pillar of this plan.
Building on existing—but limited—environmental fiscal tools
Côte d’Ivoire already employs several environmental levies, including taxes on petroleum products, targeted environmental charges, and fees in forestry and mining sectors. However, these measures primarily serve revenue generation rather than driving decarbonization.
The new strategy seeks to enhance the incentive power of ecological taxation, motivating businesses and households to adopt sustainable practices.
A progressive, socially inclusive carbon tax plan
The proposed carbon tax will primarily target fossil fuels, excluding butane gas. Modeling suggests significant emissions reductions. For instance, an initial levy of $8 per ton of CO₂ could cut emissions by 0.2 million tons, while a $50 per ton rate could reduce them by 1.2 million tons.
While acknowledging potential short-term impacts—such as higher fuel prices and slight economic strain—the government plans to mitigate these effects through a robust revenue recycling mechanism.
Investing tax revenues in green transition and social equity
Proceeds from the carbon tax will be used to expand universal electricity access nationwide. A portion will subsidize gas or solar cookstoves, reducing dependence on charcoal and improving air quality.
The plan also includes direct aid for vulnerable households, funding for green jobs, and retraining programs for workers in sectors affected by the ecological transition. Additional incentives will support low-emission vehicles, including tax breaks, exemptions, and infrastructure like charging stations.
Phased rollout over the next decade
The strategy will be implemented in three stages from 2026 to 2035. The first phase (2026–2027) focuses on establishing legal, institutional, and technical frameworks. The second (2028–2029) introduces the carbon tax at a moderate rate. The final phase (2030–2035) consolidates the system, incorporating evaluations and refinements.
By harmonizing economic growth, social justice, and environmental protection, Côte d’Ivoire aims to lead Africa’s climate action while securing a sustainable future.
