The government will soon require businesses and companies to produce Environmental Impact Assessments (EIA) before qualifying for tax waivers. These assessments, which outline the companies’ green initiatives, will determine whether the government grants or denies their requests for tax incentives.
Majority Leader Alexander Kwamena Afenyo-Markin, a strong advocate for green initiatives, stated that the legislature would intensify its scrutiny of environmental impact assessments before approving tax waivers. This announcement came in response to a question posed by Kofi Don-Agor, President of the non-governmental group Climate Communications and Local Governance Africa (CCLG-Africa), during a Majority press conference in Parliament.
“Already there is an initiative by the government. I think it is not far-fetched for us as parliamentarians to echo this and ensure that as part of our scrutiny, we ask these critical questions about the environmental impact assessment whenever companies seek tax waivers.” Afenyo-Markin said.
He emphasized that while pursuing development, MPs must also consider the negative environmental impacts of investments and how to mitigate them. “We need to ask what social responsibility programs will be put in place to ensure that while making a positive impact on the economy, companies are also not destroying the environment,” he added.
Building a green fiscal recovery and implementing policies and incentives for a sustainable and green economy are crucial for the medium to long term. The country’s Environmental Assessment Regulations, LI 1652, promulgated in 1999, provide comprehensive legal cover for Ghana’s Environmental Impact Assessment procedures.
These regulations require that all developmental activities likely to impact the environment adversely must undergo an Environmental Assessment.
Analysts believe that EIAs remain a useful tool for addressing climate change. A UN report suggests that investing $1.3 trillion (£800bn) annually in green sectors would deliver long-term stability in the global economy. Spending about 2% of global GDP in 10 key areas could kick-start a “low carbon, resource-efficient green economy.”
The United Nations Environment Programme (UNEP) defines a “green economy” as one that results in “improved human well-being and social equity while significantly reducing environmental risks and ecological scarcities.”
By Eugene Davis
