African leaders propose global carbon tax regime at Nairobi Climate Summit
African leaders have called for the implementation of a global carbon tax regime in a joint declaration, following the conclusion of the three-day Africa Climate Summit in Nairobi, Kenya. The Nairobi Declaration, released on Wednesday, demands that major polluters allocate additional resources to assist poorer nations in their fight against climate change.
The declaration, which will serve as the foundation of Africa’s negotiating position at the upcoming COP28 summit in November, emphasizes the urgent need to mobilize financing to tackle extreme weather conditions, preserve natural resources, and promote the development of renewable energy.
Africa is among the most vulnerable continents to the effects of climate change, yet only receives approximately 12% of the nearly $300 billion required annually to address these challenges, according to researchers.
The Nairobi Declaration urges world leaders to support the proposal for a global carbon taxation regime, including a carbon tax on fossil fuel trade, maritime transportation, and aviation. This approach may also be complemented by a global financial transaction tax. Human rights activist Graça Machel hailed the declaration as a significant step forward, stating that Africa is a key player that offers investment and solutions.
The declaration further argues that such measures would generate substantial financing for climate-related investments, while shielding the issue of tax increases from geopolitical and domestic political pressures. Currently, around two dozen countries impose carbon taxes, as noted by the International Monetary Fund (IMF). However, the idea of a global carbon tax regime has encountered limited support.
President William Ruto of Kenya pointed to past proposals within the European Union for a financial transaction tax during the summit. In 2011, conservation groups suggested using revenues from such a tax to fund environmental priorities. However, the European Commission’s proposal failed to garner the necessary unanimous approval from the European Council to be enacted into law.
While activists welcome the call for a global carbon tax, some argue that measures such as carbon credits, which allow polluters to offset emissions by financing green activities, enable major polluters to continue emitting carbon dioxide without meaningful action. Critics claim that carbon credits are a false solution and should be rejected.
During the summit, President Ruto announced that international governments, development banks, private investors, and philanthropists had committed a combined $23 billion to various green projects, including substantial funding for a major carbon markets initiative. However, African leaders recognized that these investments only scratch the surface of the continent’s financial needs, emphasizing the necessity for more substantial systemic changes.
Critics argue that the summit did not adequately address measures to help Africans adapt to extreme weather conditions. Additionally, protesters demonstrated against Africa’s plan to sell carbon credits to foreign countries outside the conference venue. Several foreign companies and countries, including the United Arab Emirates, have pledged hundreds of millions to purchase carbon credits from the Africa Carbon Markets Initiative (ACMI).
The Nairobi Climate Summit has brought together African leaders to advocate for stronger international commitment and financial support in addressing climate change. As preparations for the COP28 summit continue, the pressure is mounting on world leaders to take decisive action to combat the ever-increasing threat of climate change.