President William Ruto on Tuesday suggested that African countries should introduce a carbon tax.
Speaking during the Africa Climate Summit, Ruto said that carbon tax is the only way the countries can raise adequate resources.
"To unlock the resources that we need to drive this new investment and financial opportunities, especially for green energy, we believe it is time to have a conversation about carbon tax," he said.
Through carbon tax, the President highlighted that African countries can use it to finance development.
Also, Ruto noted that carbon tax can be utilized to unlock the resources that we need to be able to drive new financial opportunities, especially for green energy.
Carbon tax is a type of penalty that businesses must pay for excessive greenhouse gas emissions.
The tax is usually levied per ton of greenhouse gas emissions emitted.
According to Investopedia, Carbon taxes have been implemented in 35 countries to date.
The United States has not enacted a carbon tax although several proposals for one have been submitted to the U.S. Congress.
The carbon tax is paid by businesses and industries that produce carbon dioxide through their operations.
Investopedia also stated that the tax is designed to encourage such businesses to reduce their output of greenhouse gases and carbon dioxide, a colourless and odourless incombustible gas, into the atmosphere
