(Ecofin Agency) - In South Africa, the carbon tax law has been signed after years of delays. In its first phase (June 1, 2019, to December 2022) the tax will be ZAR120 ($8.34) per tonne of carbon dioxide equivalent. According to the treasury, which announced the signing, allowable tax breaks could reduce the rate to between ZAR6 to ZAR48 per tonne.
“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 indicated.
The second phase of this tax will be implemented in 2023-2030. The initiative was taken in 2010 but postponed at least three times because of the resistance of mining, energy and metallurgical companies claiming that such tax would increase energy prices.
For climate activists, this tax although welcomed, is insufficient.
Gwladys Johnson Akinocho