State releases carbon tax discussion paper

Pretoria, South Africa — ESI-AFRICA.COM — 14 December 2010 – The South Africa National Treasury has released a paper containing proposals on how to phase in a tax on carbon emissions in order to encourage businesses to use green energy.

The ministry has proposed three options involving direct tax on either carbon emissions, fossil fuel inputs, or products generated with the use of fossil fuels such as an energy source, the Treasury said in an e-mailed statement.

“A carbon tax imposed directly on all measured emissions of carbon dioxide appears to be the most appropriate,” the Treasury suggested.

Last year, South Africa committed to reduce greenhouse gas emissions by 34% by 2020 and 42% by 2025 below the “business as usual scenario,” it added.