By Syful Islam
DHAKA, May 23 (Thomson Reuters Foundation) - Bangladesh is set to
impose its own carbon tax on fuel next month – despite the hugely
climate-vulnerable country producing relatively tiny per capita
emissions.
The tax is expected to be put in place on June 1 as part of the
country's annual budget and will be part of a larger bundle of "green"
measures, Nojibur Rahman, chair of the National Board of Revenue, told
the Thomson Reuters Foundation in a telephone interview.
Many businesses and environmental groups have welcomed the plan,
saying that Bangladesh – one of the countries considered most threatened
by climate change impacts – needs to make a strong statement as
governments like that in the United States pull back from action on
climate change.
The new tax may not make any significant contribution to achieving
the Paris Agreement's goal of keeping average global temperature
increases below 2 degrees Celsius above pre-industrial levels, they
said.
But "when a country pollutes, the other countries are also affected.
So, we need to reduce carbon emission as much as possible and imposing a
tax is only way to do it," said Abdul Matlub Ahmad, outgoing president
of the Federation of Bangladesh Chambers of Commerce and Industry.
He said the tax would not only raise the price of using fossil fuels
but the added income could help push more use of renewable energy.
"If the government wants to cut the import duty on
environment-friendly renewable energy products, it needs to charge taxes
on polluters," he said in a telephone interview.
Bangladesh produces about 0.44 tonnes of carbon dioxide per person,
much lower than the United States' 16.4 tonnes, Australia's 16.3 tonnes
and Qatar's whopping 40.5 tonnes, according to World Bank figures.
Brick kilns produce black smoke at a brick producing factory in
Bangladesh's Narayanganj district, close to Dhaka. Thomson Reuters
Foundation/Shafiqul Alam
RISING RISKS
Carbon taxes – which raise the cost of using fossil fuels by creating
a charge for the climate damage they do – are one of the simplest, most
market-friendly ways of driving climate action, experts say.
But they have proved politically tricky to put in place, and not just
in poorer parts of the world where incomes are low and making fuel more
expensive can be politically risky.
But low-lying Bangladesh, which faces huge risks from sea level rise,
worsening storms, floods, droughts and other climate change impacts,
has made a name for itself as an international leader in climate action,
particularly in terms of innovative adaptation to climate change.
"Although our contribution to climate change is very nominal, we are
one of the worst victims of climate change. Aware of the problem, we
have the most successful and best climate change programmes the world
has so far witnessed in any country," Finance Minister A.M.A. Muhith,
said earlier this month at a Dhaka summit on climate change and disaster
risk reduction.
While it seeks international finance to help with programmes to
address climate change, Bangladesh also has paid for projects out of its
own nationally funded climate change fund.
M.A. Matin, general secretary of the Bangladesh Poribesh Andolon
(Bangladesh Environment Movement), said in a telephone interview that
any carbon tax would need to be accompanied a "long-term carbon
reduction plan" from the government.
In the short term, higher taxes on industry can drive up production
costs, with those costs passed on to consumers. That might mean "it's
not a right method for reducing emissions," he said.
Md. Khalequzzaman, a Bangladeshi professor at Lock Haven University
in Pennsylvania, said he believed that in a poor nation like Bangladesh
industry – rather than consumers – should bear the cost of the new tax.
"I feel that the financial beneficiaries of carbon emissions should
bear the tax as a part of their corporate social responsibility. The
ordinary people should not be burdened with the additional cost of using
power," he said in an interview.
He suggested that alongside imposing the carbon tax, the government
should look at developing renewable sources of energy in the country.
(Reporting by Syful Islam; editing by Laurie Goering :; Please credit
the Thomson Reuters Foundation, the charitable arm of Thomson Reuters,
that covers humanitarian news, climate change, resilience, women's
rights, trafficking and property rights. Visit
http://news.trust.org/climate)