Emissions Levy to impact investment decisions in oil and gas sector - Deloitte Survey

A recent survey by Deloitte has revealed that businesses in Ghana's upstream oil and gas industry expect their investment decisions, particularly in waste management, to be influenced by the introduction of the emissions levy.

The levy, which was introduced in the 2024 National Budget under the Emissions Act 1112, imposes a tax on carbon dioxide equivalent emissions across several sectors, including oil and gas, construction, manufacturing, mining, and electricity generation.

According to the survey, 40% of respondents indicated that the emissions levy would drive their investments towards cleaner technologies.

Awareness of the Ghana Revenue Authority's levy is also high, with 65% of businesses indicating they are familiar with the policy.

When asked about the importance of environmental issues, respondents gave an average rating of 4.18.

Waste management was identified as a top priority, with 65% of companies focusing on it, while 42% are prioritising renewable energy use.

Although 56% of respondents are aware of the benefits of reducing their carbon footprint to claim emissions credits, only 36% reported familiarity with their own company’s specific carbon footprint.

ESG Practices

The survey also revealed that nearly all respondents (98%) believe it is crucial for companies to publicly disclose their environmental, social, and governance (ESG) practices.

This emphasis on transparency is highlighted by an average rating of 4.22, underscoring the importance businesses place on revealing their environmental and social impacts.