Here's what you NEED to know about the Carbon Tax.
Categories: HEADLINES, Environment & Bio-diversity
The South African government has committed to ambitious greenhouse gas emissions reductions of 34% by 2020 and 42% by 2025. The carbon tax will help them meet these reduction targets and is currently scheduled to come into effect from January 2019.
The tax is aimed at businesses that emit a high level of carbon & industries that rely on fuel consumption and electricity generation. Organisations that do not make attempts to reduce their carbon footprint will face penalties. The aim is to encourage a transition to a more sustainable, low-carbon future.
Some highlights of the impending carbon tax:
- The first stages of the tax look set to take effect from January 2019.
- The tax rate is set at R120 per tonne of CO2e (carbon dioxide equivalent) produced.
- During the first stage, a percentage-based threshold of 60% will apply, below which tax is not payable. This grace period will help businesses with the transition.
It’s advised that organisations take the time to assess the risk they face by the impending carbon tax as well as what measures should be taken reducing their exposure to the tax. Ultimately, companies who use this grace period to prepare for the carbon tax will be more easily able to transition and comply with the new carbon taxation.
For more information on the Carbon Tax and how it could affect your business, please don’t hesitate to get in touch with our Carbon & Energy team or call us on 021 702 4058.