Key Points
- South Africa invites comments on carbon tax proposals for 2026–2035.
- The plan supports emissions targets under the Paris Agreement.
- Public feedback will shape final measures for the 2025 budget.
South Africa is seeking public input on the second phase of its carbon tax policy, proposed for implementation from 2026 to 2035. The government’s latest discussion paper outlines adjustments designed to align with its ambitious climate targets under the Paris Agreement.
According to a report by ESI Africa, the country aims to achieve a net-zero carbon economy by 2050, with emissions reductions targeted at 398–510 Mt CO2e by 2025 and 350–420 Mt CO2e by 2030. These goals are part of the South Africa Low Emissions Development Strategy (SA-LEDS) and updated Nationally Determined Contributions (NDCs).
Carbon tax, first introduced as part of the 2011 National Climate Change Response Policy, is central to achieving these targets. The proposed phase two includes updates to tax-free allowances, carbon offsets, and energy-related levies.
Stakeholder input vital for finalizing new proposals
The discussion paper is open for comments until December 13, 2024. Stakeholders, including businesses and environmental groups, are encouraged to contribute to refining the proposals. After consultations, the government will revise the measures and announce final plans in the 2025 Budget.
Key updates under consideration include changes to the renewable energy premium and energy efficiency savings tax incentives. Officials also aim to address how carbon tax can support both economic resilience and climate commitments.
As South Africa balances emissions reductions with economic growth, policymakers highlight the need for rapid cuts in greenhouse gas emissions from electricity, transport, and industrial processes. The government emphasizes public feedback to shape a fair and effective framework.
The full discussion paper is available on the National Treasury’s website. This consultation process is expected to help South Africa transition to a low-carbon, climate-resilient economy while maintaining economic competitiveness.
