South Africa - 02

South Africa: Implications of the Carbon Tax for Energy Policy

On 2 November the National Treasury released the draft Carbon Tax Bill for public comment. The bill has been delayed on several occasions, amid criticism that it would reduce South Africa’s economic competitiveness and not have the desired effect on emissions. IOCs are unlikely to suffer direct effects from a carbon tax in the short term, especially as various concessions have been made in the draft Carbon Tax Bill. However, the bill will likely support shifts in energy policy away from the current heavy reliance on coal, which is used to generate more than 90% of electricity.

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