South African carbon tax finally becomes law

(Reuters News, 26 May 2019) One of Africa's worst polluters is transitioning to lower emissions in a bid to meet commitments on climate change.

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 ($8.34) 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.

The second phase will run from 2023 to 2030.

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Reuters News, 26 May 2019: South African carbon tax finally becomes law