Kenyan Hydrocarbon Producers to Give 40% Carbon Tax to Local Communities
Kenya considers new carbon tax project with local communities in mind
Kenyan lawmakers passed a law according to which 40% of the carbon tax from companies, including those developing hydrocarbon deposits, will be deducted in favor of local communities on whose land the enterprises operate, writes Bloomberg.
From the tax on production in water bodies, such as mangrove forests, communities will receive 25%.
A carbon unit in the tax is the equivalent of a tonne of CO2 removed from the atmosphere or not allowed to enter the environment. This tax is levied on enterprises that produce emissions in the course of their activities. Carbon taxation in Kenya is applied to foreign companies in Kenya, it is aimed at protecting the environment and replenishing the country’s budget.
After approval by the Senate and the President, the changes will take effect.
Zimbabwe introduced a similar carbon tax law in its territories last week.
