Abstract
Discussions on the impact of climate change and ways of protecting climate change impact
driven by environmentally unfriendly activities have taken the center stage of global development
agendas. The importance of environmental sustainability is also reflected in the 2030 Sustainable
Development Goals (SDGs). Green taxes have become pivotal to protecting the environment, revenue
generation and achievement of the SDGs. Through a critical literature review, this paper explores
the opportunities and challenges associated with green taxes with respect to revenue mobilization,
protection of the environment and delivery of the SDGs. The paper gives an insight to green taxes,
exploring the motives of green taxes and the possible implications for environmental sustainability,
sustainable development, and attainment of the SDGs in the African context. Fossil fuels such as
coal, crude oil and natural gases are fundamental sources of energy for African countries. Therefore,
the continent faces a dilemma of how to ensure green economic growth, reduce environmental
and climate change problems, and at the same time foster effective revenue mobilization. The
review established that while green taxes can provide an opportunity for green transformation
policy reforms and boost revenue mobilization to stimulate inclusive and sustainable growth and
economic recovery from the COVID-19-induced economic recession, the taxes can increase inequality,
heighten the cost of energy, and increase energy poverty for those dependent on fossil fuel for
energy. The lack of affordability and access would compromise SDGs such as 7 and 1 (access to
clean energy and poverty reduction, respectively). The taxes could lead to a disjointed value chain
with consumers disadvantaged and an increase in black market activities as people seek cheaper but
unsafe alternatives, indirectly increasing the social costs such as health risks and challenges, poverty,
and unemployment.