Deloitte’s Oil and Gas Survey: Investment decisions to be affected by emissions levy – Businesses reveal

Key findings from an Oil and Gas Survey by professional services firm, Deloitte, has revealed that businesses in the upstream oil industry believe their investment decisions especially in relation to waste management is going to be affected by the introduction and sustenance of the emissions levy.

The emission levy was introduced in the 2024 National Budget. The Emission Act 1112 imposes tax on the carbon dioxide equivalent emissions of taxpayers in specified sectors, including construction, manufacturing, mining, oil and gas and electricity and heating.

Fourty percent of the business (respondents) were of the view the levy would influence their investment decisions towards cleaner technologies.

The respondents also stated that the awareness of the Ghana Revenue Authority emissions levy is high, with approximately 65% of them indicating knowledge of the policy.

The respondents also gave an average rating of 4.18 describing the importance of environmental issues.

When evaluating their company’s environmental performance, 65% of the respondents prioritise waste management and 42% renewable energy usage.

In terms of the awareness of the importance of carbon footprint in claiming emissions credit, 56% said they were aware.

However, the knowledge of their company’s specific carbon footprint is less prevalent, with only 36% of respondents stating familiarity.

ESG Practices

For Environmental Sustainable and Governance practices, about 98% respondents believe that it is important for companies to disclose their ESG practices publicly.

This view is further reinforced by the rating of 4.22 given to the companies for the importance of transparency about their environmental and social impact.