S. Africa to introduce carbon tax from 2015

Smoke billows from a refinery just outside Durban City on November 29, 2011
Smoke billows from a refinery just outside Durban City on November 29, 2011. South Africa will introduce a tax on carbon emissions in 2015 amid concerns of global warming, Finance Minister Pravin Gordhan announced on Wednesday.

South Africa will introduce a tax on carbon emissions in 2015 amid concerns of global warming, Finance Minister Pravin Gordhan announced on Wednesday.

The tax to come into effect in January 2015 will be levied at 120 rand ($14) per tonne of carbon dioxide and will be subject to a 10 percent increase every year for the first five years.

"To soften the impact, a tax-free exemption threshold of 60 percent will be set with additional allowances for emissions-intensive and trade-exposed industries," he proposed in his 2013 budget speech.

The new will see the phasing out of the existing electricity levy, a tax on non-renewable and nuclear energy.

He said government will also back incentives to upgrade fuel refineries and the production of bio-fuel in a bid to boost output of cleaner fuel in the country.

"We are also encouraging the private sector and smaller public entities to be creative and develop low-carbon projects," he said.

The government has pledged to reduce domestic by 34 percent by 2020 and by 42 percent by 2025.


Explore further

Australia to link with EU carbon scheme from 2015

(c) 2013 AFP

Citation: S. Africa to introduce carbon tax from 2015 (2013, February 27) retrieved 25 November 2020 from https://phys.org/news/2013-02-africa-carbon-tax.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.
0 shares

Feedback to editors

User comments