The 2025 National Budget of Zimbabwe, presented by Finance Minister Professor Mthuli Ncube, has incited considerable discussion, particularly concerning its climate-friendly initiatives. The budget includes notable measures such as reducing customs duties on electric vehicles (EVs), offering tax exemptions for EV-related infrastructure, exempting biodegradable carrier bag production from value-added tax, and a 20 percent tax imposition on plastic carrier bags to encourage biodegradable alternatives. These proactive steps aim to drive the adoption of smart energy solutions and biodegradable materials while addressing the overarching issue of climate change. Though these efforts have received commendation, numerous climate experts have urged the Government to implement more robust policies to attract green investments and ensure sustainability.
Mixed Reception from Climate Experts
Experts like Mr. Anglistone Sibanda, CEO of Africa Carbon Markets Forum, have expressed their appreciation for the steps taken by the government but have also highlighted the necessity for comprehensive policies to draw green investments. According to Mr. Sibanda, public education on reusing and recycling plastics should be a priority. Furthermore, empowering the Environmental Management Agency (EMA) to track waste and penalize polluters is crucial to ensure that these measures have a long-term impact. While the reduction of duties on EVs is a positive move, encouraging government leadership in adopting EVs for public operations and phasing out fossil fuels is essential to align with COP29 resolutions and Nationally Determined Contributions (NDCs).
Mr. Sibanda also emphasized the importance of creating a conducive environment for smart energy investments through supportive policy frameworks. Without such frameworks, the shift toward sustainable energy solutions might lack the necessary momentum. Meanwhile, environmental expert Mr. Jeff Gogo echoed similar sentiments, acknowledging that the budget aligns with Zimbabwe’s climate goals. He pointed out that reducing customs duties on EVs could lead to mainstream adoption of eco-friendly transportation, thereby reducing carbon emissions and dependence on fossil fuels. However, this necessitates a supportive infrastructure that could catalyze the green sector, creating new job opportunities through incentives such as rebates on solar-powered charging equipment.
Economic Benefits and Energy Security
Another aspect lauded by experts is the exemption of value-added tax on the production of biodegradable carrier bags and LPG gas. Mr. Gogo highlighted that this exemption could lower costs, particularly amid power cuts, and it could diversify energy sources, enhancing energy security at the household level. This aligns with the growing need to secure reliable and sustainable energy alternatives. While the production of biodegradable bags without the additional tax burden is plausible, ensuring its practical implementation and public acceptance necessitates targeted educational drives and consistent government enforcement.
Despite the positive reception of these initiatives, experts stress that the government’s role in leading by example is indispensable. By adopting EVs for public operations and embracing renewable energy sources for government buildings and institutions, the government would set a precedent encouraging private entities to follow suit. This proactive stance is fundamental in driving a national shift towards greener practices. In sum, the budget presents a range of climate-friendly initiatives designed to curb carbon emissions, promote renewable energy, and stimulate the production of biodegradable materials. However, the long-term success of these initiatives hinges on the government’s ability to enforce and build upon these measures. Strengthened policies and incentives are necessary to attract green investments and ensure sustainable growth in tandem with economic development.
Path Forward for Sustainable Growth
Experts commend the exemption of value-added tax on the production of biodegradable bags and LPG gas. Mr. Gogo emphasized that this tax relief could reduce costs, especially during power outages, and diversify energy sources, boosting household energy security. This aligns with the need for reliable and sustainable energy options. While producing biodegradable bags without extra tax is feasible, practical implementation and public acceptance require educational campaigns and strong government enforcement.
Despite positive feedback, experts insist that government leadership is critical. By using EVs in public operations and renewable energy for government buildings, the government would set an example, encouraging private sectors to adopt similar green practices. This proactive approach is essential for driving a national move toward environmentally friendly practices. The budget includes various climate-friendly initiatives aimed at reducing carbon emissions, promoting renewable energy, and supporting biodegradable production. However, the success of these initiatives depends on the government’s ability to enforce and enhance these measures. Stronger policies and incentives are crucial to attracting green investments and ensuring sustainable growth alongside economic progress.
