Sinokubonga Nkala
Sikhulekelani Moyo,mskhulekelani16@gmail.com
CLIMATE experts have lauded the 2025 National Budget for its climate-friendly measures, such as new taxes and rebates aimed at encouraging the adoption of smart energy solutions and biodegradable materials.
Nonetheless, they have urged the Government to strengthen these efforts by implementing robust policies that will attract green investments and guarantee sustainability.
Finance, Economic Development, and Investment Promotion Minister, Professor Mthuli Ncube, who presented the budget, highlighted the pressing need for innovative solutions to address climate change.
He explained that while global efforts are underway to create financial packages aimed at addressing structural shifts towards resource efficiency, initiatives at the country level must also be adopted to address the complex challenges related to climate change.
Prof Ncube proposed several measures to address these challenges, such as lowering customs duty on electric motor vehicles, extending the rebate of duty on equipment used for setting up electrical vehicle solar-powered charging stations, granting importers of approved operators of these facilities tax exemptions, and exempting the production of biodegradable carrier bags from value-added tax. Additionally, he also proposed a 20 percent tax on the sale of plastic carrier bags to encourage the use of biodegradable bags and a withholding tax exemption on the supply of recyclable plastics provided the aggregate amount supplied does not exceed US$5 000 in any year of assessment.
While commending the Government’s climate-friendly moves, Mr Anglistone Sibanda, the CEO of Africa Carbon Markets Forum (ACMF), emphasised the need for comprehensive policies that can attract green investments.
“These are baby steps towards climate action that are commendable but they have to be supported by policies that attract green investment. Yes, it’s good to tax plastic bags, but that tax will eventually be borne by the final consumer who is struggling to make ends meet because those responsible for producing and distributing plastic bags will simply pass on the taxation cost to the consumer,” he said.
He called for public education on reusing and recycling plastics and suggested empowering the Environmental Management Agency (EMA) to implement waste tracking and impose penalties on polluting companies.
On EV policies, Mr Sibanda lauded the duty reductions but urged the Government to lead by example.
“I would have been happy to see the Government procure EVs for its operations and phase out fossil fuel use, aligning with COP29 resolutions and the country’s Nationally Determined Contributions (NDCs),” he said.
Mr Sibanda said for the country to have more investments in smart energy, the Government should create a friendly environment, and come up with policy frameworks that will attract more investors.
Experts reiterated the importance of pursuing sustainable industrialisation and climate-smart business growth. Policies fostering eco-friendly practices in the industrial sector and promoting renewable energy are essential for achieving both economic growth and environmental responsibility.
Environmental expert and carbon market analyst, Mr Jeff Gogo, noted that the budget aligns well with Zimbabwe’s climate objectives.
He said the reduction of customs duty on EVs will help mainstream eco-friendly transportation.
“Cheaper EVs can encourage more users to adopt them, which helps to reduce carbon emissions and reliance on fossil fuels.
“This way, Zimbabwe can improve its efforts to limit emissions from the transport sector, a key objective for its NDC under the Paris Agreement,” said Mr Gogo.
“The rebate on solar-powered charging equipment dovetails with the above changes in EV import policy. The measure not only promotes the use of renewable energy sources but could also attract investment that creates some jobs in the green sector.”
Mr Gogo said the LPG gas value added tax exemption is designed to lower the cost for users amid the rolling power cuts.
He said the increased use of LPG can diversify Zimbabwe’s energy sources at the household level while improving energy security.
mbulelo smpofu
