Côte d’Ivoire’s new carbon tax to power a green economy

The Ivorian government has revealed its national carbon taxation strategy, a plan designed with two core aims: to discourage the use of fossil fuels by making them more expensive and to create a revenue stream for financing the nation’s energy transition and promoting social justice. This tax is a key component of Côte d’Ivoire’s climate action plan, intended to significantly lower emissions by 2030.

Since regaining political stability in 2011, Côte d’Ivoire has emerged as one of Africa’s top-performing economies. The nation now aims to shift its growth model towards greater inclusivity and sustainability. In line with this vision, Adama Coulibaly, the Minister of Economy, Finance, and Budget, presented the country’s national strategy for carbon emissions taxation on May 28, 2026.

Rising emissions, falling carbon intensity

Fueled by rapid economic expansion, Côte d’Ivoire’s greenhouse gas emissions more than doubled between 2011 and 2024, climbing from 9 to 18.8 million tonnes. Minister Adama Coulibaly attributed this increase to a reliance on fossil fuels, the expansion of transportation networks, industrialization, and agricultural activities.

However, during this same period, the country’s GDP grew at an even faster rate, surging from $35 billion to nearly $87 billion. This has resulted in a decrease in the carbon intensity of the Ivorian economy, indicating that the country is already making strides in its energy transition. On a global scale, per capita emissions remain low at 0.65 tonnes annually, compared to approximately 5 tonnes in France, 8 tonnes in China, and over 13 tonnes in the United States.

Why Abidjan is accelerating its decarbonization efforts

The government is committed to ensuring Côte d’Ivoire contributes its share to the global climate effort. The impacts of climate change, including rising temperatures, altered rainfall patterns, and an increase in environmental hazards, are already affecting various sectors, particularly agriculture, which provides employment for nearly half the population.

Consequently, Côte d’Ivoire has set an ambitious target: to substantially reduce its carbon footprint by 2035 while sustaining an annual growth rate above 7%. In its third Nationally Determined Contribution (CDN), published in 2025, the nation projects a 33% reduction in greenhouse gas emissions using its own resources, with the potential to reach a 74% reduction with international funding and support.

How the carbon tax will be implemented

The new carbon tax is designed to support this decarbonization path and will be rolled out in three stages. From 2026 to 2027, the government will establish the necessary legal and technical frameworks. The tax will then be introduced at a moderate rate between 2028 and 2029. Following this, the rate will be gradually increased until 2035, after which a phase of evaluation and adjustment will begin.

This future tax will primarily target the consumption of fossil fuels, with an exemption for butane gas. By increasing the cost of these fuels, the policy aims to incentivize a reduction in their use. Government estimates suggest that a tax rate of 50 euros per tonne of CO₂ could cut national emissions by 1.2 million tonnes, equivalent to 6% of 2024 levels.

The government acknowledges that the measure may have some short-term negative economic consequences. The ministry anticipates that the tax could lead to higher fuel prices and potentially dampen growth in its initial years.

Supporting the transition, jobs, and vulnerable households

The revenue generated from the tax is intended to mitigate these adverse effects, primarily by speeding up the decarbonization of energy consumption. A priority for these funds will be to ensure electricity access across the entire country. A portion of the proceeds will subsidize the purchase of electric or gas stoves to diminish reliance on charcoal. Furthermore, the tax will foster the growth of the electric vehicle market through fiscal incentives, targeted exemptions, and the development of charging infrastructure.

The government also plans to shield the most vulnerable households from the reform’s impact. A share of the revenue will be distributed directly to low-income families. These funds will also support the creation of green jobs and retraining programs for workers in sectors affected by the ecological transition. This carbon tax aligns with the central priority of the 2026-2030 National Development Plan (PND): to harmonize economic growth with social justice and environmental protection.