THE CARBON TAX ACT SUMMARISED
President Cyril Ramaphosa has signed the Carbon Tax Act No15 of 2019 into law, this came into effect as of the 1st of June 2019
Carbon Tax will be implemented in 2 phases.
Phase 1 is to take place from the 1st of June 2019 to the 31st of December of 2022 after which Phase 2 will be from 2023 to 2030.
Why have Carbon Tax?
It is said that Climate change is one of the biggest challenges that face mankind today. By implementing the Carbon Tax Act. South Africa as agreed in the Paris Agreement with UNFCC, as one of the biggest contributors to pollution on the African continent, will aim to make a difference, with the primary objective being to reduce Green House Gas emissions in a sustainable and cost-effective manner.
Are there repercussions?
While this is seen as a positive move towards sustainability and reducing our carbon footprint, there has been some concern raised by our Mining Companies, Steel Manufacturers and Eskom itself. The main concern is the price of electricity. It has been stated that there will be no such changes during Phase 1. Thus, allowing companies to “transition their operations to a cleaner technology through investments in energy efficiency, renewables and other low carbon measures.”
“If our nation wants to reduce global warming, air pollution and energy instability, we should invest only in the best energy options.” – Mark Z Jacobson
William van Greunen
OHS Consultant – Compliance Hub