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Côte d’Ivoire introduces carbon tax to accelerate energy transition

Côte d’Ivoire introduces carbon tax to accelerate energy transition

The Ivorian government unveiled its national carbon taxation strategy in late May 2026. The measure aims to discourage fossil fuel consumption by raising prices while generating revenue to fund the energy transition and social equity. This tax is part of Côte d’Ivoire’s climate trajectory and is expected to significantly reduce emissions by 2030.

Côte d’Ivoire has set the ambitious goal of significantly reducing its carbon footprint by 2035 while maintaining annual growth above 7%.

Since regaining political stability in 2011, Côte d’Ivoire has been one of Africa’s fastest-growing economies. Now the country aims to make its growth more inclusive and sustainable. To that end, Adama Coulibaly, Minister of Economy, Finance and Budget, presented a “national strategy for taxing carbon emissions” on 28 May 2026.

Emissions rising, carbon intensity falling

Driven by economic expansion, Côte d’Ivoire’s greenhouse gas emissions more than doubled between 2011 and 2024, from 9 to 18.8 million tonnes. “This trend is linked to dependence on fossil fuels, transport growth, industrialisation and agricultural activities,” Coulibaly explained.

Over the same period, GDP rose even faster, from $35 billion to nearly $87 billion. As a result, the carbon intensity of the Ivorian economy decreased, signalling that the country is already on a path toward energy transition. Emissions per capita remain low globally: 0.65 tonnes per year, compared with about 5 tonnes in France, 8 tonnes in China and over 13 tonnes in the United States.

Why Abidjan wants to accelerate decarbonisation

Nevertheless, the government wants Côte d’Ivoire to play its part in the global climate effort. Rising temperatures, disrupted rainfall patterns, and increasing environmental hazards are already affecting many sectors, especially agriculture, which employs nearly half the population.

Côte d’Ivoire has set an ambitious goal: significantly reduce its carbon footprint by 2035 while maintaining annual growth above 7%. In its third Nationally Determined Contribution (NDC), published in 2025, the country plans a 33% reduction in greenhouse gas emissions using its own resources, and up to 74% with international financing and support.

How the carbon tax will be rolled out

The carbon tax will support this decarbonisation trajectory. It will be implemented in three phases. Between 2026 and 2027, the government will adopt the legal and technical framework, followed by a moderate-rate entry into force in 2028-2029. The rate will then be gradually increased until 2035, after which evaluation and adjustment will take place.

The tax will primarily target fossil fuel consumption, with the exception of butane gas. By making these fuels more expensive, it aims to reduce their use. Government estimates suggest that a rate of €50 per tonne of CO₂ would cut national emissions by 1.2 million tonnes, or 6% of 2024 levels.

The government acknowledges that the measure could have negative short-term economic effects. The ministry estimates that the tax could lead to higher fuel prices and weigh on growth in the early years of implementation.

Funding the transition, employment, and support for the most vulnerable

Revenue from the tax is intended to mitigate these negative effects, particularly by accelerating the decarbonisation of energy use. It will primarily finance nationwide access to electricity. Part of the funds will subsidise the purchase of electric or gas cookers to reduce reliance on charcoal. The tax will also support the growth of electric vehicles through tax incentives, targeted exemptions, and the deployment of charging infrastructure.

The government also aims to limit the impact on the most vulnerable households. A portion of the revenue will be redistributed directly to low-income families. These funds will also finance green job creation and retraining programmes for sectors affected by the ecological transition. The carbon tax thus aligns with the stated priority of the National Development Plan (PND) 2026-2030: reconciling economic growth, social justice, and environmental protection.