Transcript Ghana EFR Policy presentation

HIGHLIGHTS OF GHANA’S
ENVIRONMENTAL FISCAL
REFORM POLICY (WIP)
Presented by:
Ebenezer Nortey (Ministry of Finance) at
UNEP Regional Workshop on Inclusive Green Economies for
Poverty Reduction and Sustainable Development in Africa,
28th February - 1st March 2015 at Cairo, Egypt
Outline
Why Environmental Fiscal Reforms (EFR)
 Major Fiscal Policy Reforms
 Fiscal, social and Environmental implications
 Implementation/Institutional Arrangements
 Role of political economy, challenges and
mitigation
 Conclusion

WHY EFR
Poverty Reduction
•Addressing environmental problems that
affect the Poor
•Improved access to environmental
infrastructure
•Finances for pro-poor investments (e.g.
education)
Environmental Benefits
•Incentives for sustainable natural
resource management
•Incentives for curbing pollution
(air, water, soil)
•Funds for environmental agencies
and investment
Fiscal Benefits
•Revenue mobilization
•Reduced distortions
•Reduced drains on Public
Finance
Major Fiscal Policy Reforms

The EFR policy has 7 policy focus areas with 13
programme areas. These target the broad scope
of environmental impacts and response in Ghana.

The policy themes and their respective
programme areas are as follows:
Policy Themes
1. Crossprogramme area 1:
sectoral
programme area 2:
programme area 3:
Programme Areas
Establishment of the Ghana EFR
Commission
Establishment of the Ghana Green Fund
Systematic greening of Ghana's taxes and
duties
programme area 4: systematic greening of public budgeting
systems and expenditure frameworks
2. Waste
management
programme area 5: Reform of plastic tax and product taxes as
part of integrated waste recycling
programme area 6: EFR incentives for municipal waste
management
3. Forestry
programme area 7:
Modifying revenue allocation of public
timber sales and stumpage fees
4. Mining
programme area 8:
Royalties from registered small scale
miners
Import taxation of mining equipment
and machinery
programme area 9:
5. Transport
programme area 10: Greening transport taxes and transport
modes
6. Energy
programme area 11: Carbon dioxide Tax
programme area 12: Tax shift
7. Industry
programme area 13: Industrial pollution taxes
Fiscal, Social &Environmental
Implications
•
Fiscal Implications:
– Promote green and climate sensitive budgeting
– Mobilization of resources (domestically and internationally,
public and private) to address environmental problems
– Reduced distortions
– Reduced drain on public finance e.g. waste treatment cost,
reclamation/rehabilitation costs, health costs, etc.
•
Social Implications:
– The EFR policy provides for strategic direction and coordination
to achieve welfare gains for the entire society
– The policy promotes technological innovation, as well as the
development and growth of green industries in Ghana and the
creation of new employment in these industries
– Improve health of the people and longevity of life
Fiscal, Social & Env. Implications Contd.
•
Environmental implications:
•
The policy contributes to addressing the following
environmental challenges Ghana faces:
– Deforestation, unsustainable forestry practices, including related
adverse effects, and protected areas development;
– Environmental pollution and degradation, including associated
livelihood challenges, caused by small scale mining;
– Climate change mitigation and adaptation;
– Inadequate waste management, including the development of
waste recycling and reuse industries based on separate waste
collection, decreasing costs of current waste management
systems;
– Unsustainable transport modes and related health and
environmental impacts; and
– Education, research and awareness programmes related to all the
above listed areas
– Inadequate funds for environmental agencies and investment
Implementation/Institutional
Arrangements

A number of national institutions and private sector organizations in
Ghana whose mandates/activities touch on environmental fiscal reform
issues shall play key roles in ensuring successful implementation.

These institutions include the following:
•
Ministry of Environment, Science, Technology and Innovation
•
Ministry of Finance
•
Ministry of Lands & Natural Resources
•
Ministry of Local Government & Rural Development
•
Ministry of Energy & Petroleum
•
Ministry of Transport
•
Ministry of Health
•
Ministry of Education
•
Non-governmental / Civil Society Organizations; and
•
Private Sector
Role of political economy, challenges
and mitigation

The policy has outlined the ff. as critical to
ensuring success:
•
Governance, coordination and information
Capacity building and Education
Finance
International cooperation
Gender
Research and Development
Monitoring & Evaluation
•
•
•
•
•
•
Conclusion

EFR is aimed at
◦ Achieving welfare gains
◦ Employment creation (via creation of green
industries and green jobs)
◦ Addressing important environmental challenges
in Ghana
◦ Mobilizing resources domestically and
internationally for sustainable development
◦ Making the national budget green and climate
change sensitive
THANK YOU