The Second Draft Carbon Tax Bill is open for public comment until Friday 9 March 2018.
The carbon tax is aimed at companies and businesses that have high carbon emissions, such as industries that rely on fossil fuel consumption. This will give effect to the ‘polluter pays’ principle, and will assist South Africa in reducing greenhouse gas emissions and in reaching its nationally-determined contribution commitments in terms of the 2015 Paris agreement on climate change. The tax aims to persuade companies to take steps now to prepare for the future, by gradually changing their fuel inputs, production techniques and processes by encouraging investments in energy efficient, low carbon technologies to lower their carbon emissions. It will also ensure that while it has a significant impact in reducing the greenhouse gas emissions of South Africa, it will also realise sustained economic growth.
The carbon tax is one of the tools we can employ to reduce our greenhouse gas emissions and prevent further global warming. It would lead to an estimated decrease in carbon emissions of 13% to 14.5% by 2025 and 26% to 33% by 2035. Because of this, it’s essential that the tax is designed effectively, and imperative that South Africans contribute their comments on the draft Bill to ensure that it’s undertaken successfully.