11.4 C
New York
Tuesday, November 5, 2024
HomeWorld NewsSouth Africa’s carbon tax law takes effect

South Africa’s carbon tax law takes effect

Date:

Related stories

Malala likens Taliban’s treatment of women to apartheid

NOBEL Peace Prize winner Malala Yousafzai on Tuesday (5)...

Cleverly signs new Rwanda treaty to resurrect asylum plan

BRITAIN signed a new treaty with Rwanda on Tuesday...

King says ‘no excuse’ for colonial abuses during Kenya visit

KING CHARLES said on Tuesday (31) that there could...

Modi views model of Swaminarayan temple in South Africa

PRIME minister Narendra Modi viewed a model of the...

India, Uganda discuss cooperation in trade, energy and defence

India’s external affairs minister S Jaishankar has called on...

South Africa’s long-delayed carbon tax has been enshrined in law, the treasury said on Sunday, as one of the continent’s worst polluters transitions to lower emissions in its efforts to meet agreements on global climate change.

The tax was first mooted in 2010 but has been postponed at least three times after mining companies, steelmakers and state-owned power utility Eskom said it would erode profit and push up electricity prices.

The first phase of the tax is from June 1 to December 2022, with a tax rate of 120 rand (£6.48) per tonne of carbon dioxide equivalent.

Allowable tax breaks will reduce the effective rate to between 6 rand and 48 rand per tonne of CO2, National Treasury said in a statement after the tax was signed in to law by President Cyril Ramaphosa.

“A review of the impact of the tax will be conducted before the second phase and will take into account the progress made to reduce GHG (greenhouse gas) emissions in line with our National Determined Contribution,” the treasury said.

- Advertisement -

The second phase will run from 2023 to 2030.

Big energy users including Sibanye-Stillwater and ArcelorMittal’s South African operation had previously opposed plans to enact carbon tax laws, saying the levies are unaffordable and should be scrapped or delayed.

Local and overseas climate activists, however, believe the tax response falls short of emissions targets the country signed up for in the 2015 Paris Agreement. The tax is considered “highly insufficient” by the Climate Action Tracker group.

The treasury said it does not expect the tax to push up electricity prices.

Ailing state power company Eskom, which has implemented nationwide blackouts this year, was granted a near 10 percent tariff increase for 2019 by the regulator but has complained that the increase will not solve its deep cash crunch.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

LEAVE A REPLY

Please enter your comment!
Please enter your name here