South Africa moves on carbon tax


A carbon tax has been signed into law by the South African Government, with President Cyril Ramaphosa announcing that the new Carbon Tax Act No 15 will come into effect from 1 June 2019.

“Government has outlined its strong commitment to play its part in global efforts to mitigate GHG emissions as outlined in the National Climate Change Response Policy,” Mr Ramaphosa said in a statement earlier this week.

The new carbon tax establishes a polluter-pays principle for the country’s larger emitters, with new incentives scheduled to come online to help companies transition to cleaner technologies.

“Climate change represents one of the biggest challenges facing human kind, and the primary objective of the carbon tax is to reduce greenhouse gas (GHG) emissions in a sustainable, cost effective and affordable manner,” Mr Ramaphosa said.

The announcement by the South African Government comes a matter of weeks after United Nations’ Secretary-General António Guterres urged a transition to carbon taxing.

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