Policy & Regulation

South Africa prepares ground for carbon tax

There is little time left to road-test South Africa’s planned carbon tax before it takes effect next year There is little time left to road-test South Africa’s planned carbon tax before it takes effect next year.
By Leigh Elston 14 May 2018 0 30842
Electricity pylons in South Africa Electricity pylons leading to the Lethaba power station. (World Bank/Flickr)

Energy companies are readying themselves for the implementation of South Africa’s carbon tax, which is scheduled to take place next year. However, industry players have said the system will raise electricity prices, make the country less competitive and have little effect on reducing greenhouse gas (GHG) emissions until alternative sources of energy supply are brought online.

Malusi Gigaba, the country’s former finance minister, said in his budget presentation in February that South Africa would introduce the first phase of a carbon tax by 1 January 2019....