Côte d’Ivoire introduces carbon tax to drive green energy shift

Côte d’Ivoire sets ambitious 2035 carbon reduction targets while maintaining over 7% annual growth
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Economic Policy

Côte d’Ivoire introduces carbon tax to drive green energy shift

Ivorian authorities have unveiled a landmark carbon taxation strategy designed to accelerate the country’s energy transition while funding social and environmental initiatives.

The initiative, announced by Economy Minister Adama Coulibaly in late May 2026, combines environmental protection with economic sustainability. Ivorian officials emphasized that the carbon tax aims to discourage fossil fuel consumption while generating revenue for cleaner energy infrastructure.

Balancing growth with climate responsibility

Since emerging from political instability in 2011, Côte d’Ivoire has achieved remarkable economic growth, with GDP expanding from $35 billion to nearly $87 billion by 2024. However, this prosperity came with an 109% increase in greenhouse gas emissions during the same period, rising from 9 to 18.8 million tons annually.

Despite this growth in absolute emissions, the country has made progress in reducing its carbon intensity – emissions per unit of GDP – demonstrating early signs of decoupling economic expansion from environmental impact. At just 0.65 tons of CO₂ per capita annually, Côte d’Ivoire’s emissions remain well below global averages.

From plan to implementation: a phased approach

The carbon tax will roll out in three distinct phases beginning with the establishment of legal and technical frameworks between 2026-2027. A moderate initial rate will take effect in 2028-2029 before gradually increasing through 2035, followed by an evaluation period to assess impact and adjust as needed.

Targeting fossil fuel consumption (with notable exceptions for butane gas), the tax is projected to reduce national emissions by 1.2 million tons annually by 2030 – a 6% reduction from 2024 levels – when priced at €50 per ton of CO₂.

Protecting vulnerable communities while funding green transition

The government acknowledges potential short-term economic challenges, including potential fuel price increases and growth constraints during implementation. To mitigate these effects, tax revenues will prioritize:

  • Expanding nationwide electricity access through renewable energy projects
  • Subsidizing clean cooking solutions (electric and gas stoves) to reduce charcoal dependence
  • Supporting electric vehicle adoption through tax incentives and charging infrastructure
  • Direct cash transfers to low-income households affected by the transition
  • Funding green job creation and worker retraining programs

This comprehensive approach aligns with Côte d’Ivoire’s National Development Plan (2026-2030), which emphasizes sustainable growth, social equity and environmental stewardship as interconnected priorities.