South Africa approves draft carbon tax

The South African cabinet has approved a draft policy on taxing carbon emissions. The official document will be published next month for public comment.

Gerard Grobler

International pressure and national interest obliges South Africa to do something to mitigate carbon emissions, according to Minister in the Presidency Collins Chabane.

The draft policy proposes a direct tax on greenhouse gases emitted from industrial sources, a fuel tax based on the carbon content of the fuel and a tax that could be applied to emitters where fuel is burnt.

The amount of tax would range between seven and 20 euros a metric ton of carbon dioxide emitted. In September South Africa introduced a carbon tax on new vehicles that emit more than 120 grammes of carbon dioxide per kilometre.