The draft carbon tax bill released for comment on 02 November 2015 should have caught the attention of the chemicals industry. The National Treasury has indicated that it will stand firm on implementing the tax from 01 January 2017.
The South African government has committed to significant greenhouse gas emissions (GHG) reductions: 34% by 2020 and 42% by 2025 against a ‘business as usual’ base. Significant effort and associated policies, frameworks and financial instruments to support these commitments are required for these targets to have a chance of being met.
The South African government has committed to significant greenhouse gas emissions reductions:
Reasons against the carbon tax
A carbon tax is seen by many as a simple opportunity to increase the tax base. Supporters however see it as the simplest mechanism to send required price signals to change behaviours and stimulate investor appetite to shift towards a low carbon economy. Local advocates against a carbon tax note a variety of reasons against it.
Read the full article in the Durban Chemical Cluster newsletter.