President William Ruto, on Friday, June 23, rallied world leaders to leverage technology and innovation in enforcing global taxes to address climate change.
Ruto, one of the keynote speakers at the Summit for a New Global Financing Pact in France, urged his colleague to address climate change effects urgently.
According to the head of state, imposing global taxes and other restrictions were difficult decisions that would save future generations.
Some of the taxation measures discussed at the event included carbon pricing, which acts as a tax and incentive for emissions.
Ruto expounded that the taxes would help countries, especially those in Africa, to invest in green energy and address climate change simultaneously.
He cited the example of the Grand Inga Dam in the Democratic Republic of Congo (DRC), which could be funded to help generate electricity for over 15 countries.
“How do you enforce carbon, shipping, and financial transaction taxes? I think in the world we live in today. There is a lot more creativity, innovation and technology that can give us the leverage to levy this tax.
“We are the continent with the largest renewable reserves whether it is wind, geothermal or hydropower. How are we going to raise the resources to unlock the huge potential in our continent?” Ruto posed.
Consequently, he called on the leaders to deliberate on raising funds before the Africa Climate Summit set to be held in Nairobi from September 4 to 6.
“The architects of the current multilateral system managed to craft the United Nations (UN) Charter in two months and establish the Bretton Woods Institutions in three weeks.
“Six months can be a considerable span of time. Beyond that, we risk the future of our children,” the Head of State expressed.
Ruto was flanked by his France counterpart Emmanuel Macron, International Monetary Fund (IMF) Managing Director Kristalina Georgieva and the 14th President of the World Bank Group, Ajay Banga.
Earlier, during the conclusion of the ‘How Dare You’ summit in Paris, he advocated for a new multilateral climate change action mechanism financed by global carbon taxes on fossil fuel, aviation, and marine transport, among other transactions. The taxes will fund decarbonisation, adaptation and nature protection and regeneration.
He also announced that Kenya and France resolved to contribute resources to address climate change jointly.
“We have reached an agreement on a financial compact to assist the poorest in coping with climate change. We have agreed that no country should be forced to choose between eradicating poverty and preserving the planet.
“We have agreed on additional resources to support vulnerable and poorer countries,” Ruto stated.
Climate Taxes
At the United Nations Climate Change Conference (COP27) in Sharm el-Sheikh, Egypt, a Loss and Damage Fund was established to address climate change effects.
Through the fund, larger developed countries (and biggest emitters/polluters) contribute money to help the smaller developing countries (the lowest emitters) adapt to climate change’s impacts.
As countries globally collaborate to address climate change in a multifaceted approach, among other potential approaches to address climate change is the adoption of Carbon Tax, which would tax greenhouse gas emissions.
Revenue will also be generated via the financial transactions tax to mitigate climate change.
Climate change proponents also seek to establish an international climate change fund, a voluntary contribution towards supporting climate change mitigation.
World leaders will discuss the aforementioned alongside other measures at the 2023 United Nations Climate Change Conference (COP28), in Dubai, UAE.
