Governance & Policy
South Africa Carbon Tax Act
Definition
South Africa's Carbon Tax Act, Act 15 of 2019 in force since June 2019, imposes a tax on the carbon dioxide equivalent of greenhouse gas emissions from fuel combustion, industrial processes and fugitive sources above set thresholds. A system of tax-free allowances covering most emissions in the initial phase is designed to tighten over time, alongside a carbon budget system and offset provisions.
References
Scope, rates and administration
Environmental-law context
Overview
What it means
The continent's largest emitter put a statutory price on carbon, administered through the customs and excise system.
How it is used
Large emitters license facilities and file annual accounts with SARS; companies use approved offsets to reduce liability; policy debates track allowance phase-down.
Why it matters
It is the flagship carbon pricing instrument in Africa and a reference for middle-income countries designing carbon taxes.