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Worried by global warming and climate change, the Ministry of Water, Irrigation and Energy is preparing a policy to levy carbon tax on vehicles, one of the leading sources of carbon dioxide emitted into the atmosphere. Parliament is expected to ratify the  policy when it meets again in the next Ethiopian year. 
A number of countries around the globe have introduced market-based emission trading schemes and carbon taxes, which are charged for carbon content that is contained per ton of fuel. A source in the ministry told Capital, “We know that many other countries have already made huge steps towards reducing their carbon emissions, and that includes developing nations like China. Countries have started this transformation to take advantage of the economic opportunities stemming from the next stage of global development that will be powered by clean energy. And we are preparing a policy to reduce carbon emission.”
Many countries encourage and promote use of renewable energy resources. Energy performance standards for appliances, buildings and industrial plants are mandatory, and incentives for the use and development of low emission products and technologies are now widespread.
In this vein, the ministry said it is also working with the Ethiopian Revenue and Custom Authority to increase tax on imported cars that emit high amounts of  carbon, Capital  has learned. “We started exploring options that encourage the use of less carbon emitting vehicles and machines. Ethiopia has promised to create a climate change resilient green economy by 2025 and this is one of the steps to achieve that,’’ he added.
Last week, Capital has reported that transport vehicles in Addis Ababa contribute for 47 percent of total carbon dioxide emission. This may not be surprising considering  the city is home for 50 percent of the entire vehicle population in the country. Within the transportation sector, on-road transportation accounts for 1.4 million tons of carbon emissiong