Ruto proposes the introduction of an ambitious new carbon tax at the COP28 summit, a move that will likely increase fuel prices.
The price of fossil fuels and travel may increase, should President William Ruto’s ambitious new carbon tax proposal, which was presented at the COP28 conference in Dubai, United Arab Emirates succeed.
According to Ruto’s concept, companies that utilize fossil fuels and produce greenhouse gases should be held accountable for the harm their operations do to the environment.
Ruto during his speech at the COP28 summit stated that the “difficult” talk about paying for pollution has to happen immediately.
“It was a difficult conversation before, but I think everyone now realizes we need new sources of revenue to backstop climate financing, and it has to be new channels of resources, where everybody contributes, not the traditional contributors,” Ruto said.
President Ruto expressed his confidence in the carbon tax, saying it will bolster development in Africa.
“We need to have a conversation about carbon tax. We believe it is among the ways we can raise additional and adequate resources to finance our development,” Ruto said.
The new tax would also be imposed on fossil fuel companies, which could, in turn, load the cost on consumers and hence raise the cost of fuel.
According to Ruto, a carbon tax will give the continent access to resources that will help it create investment opportunities and raise money for green energy.
At the summit, the president also urged international cooperation to address climate change and global warming issues.