Minister Barbara Creecy on carbon tax as mechanism to ensure lower greenhouse emission
23 February 2022
The Minister of Forestry, Fisheries and the Environment, Ms Barbara Creecy, welcomes the announcement by Finance Minister, Mr Enoch Godongwana, in the Budget Speech relating to carbon tax increases from 2026, to ensure South Africa lowers its greenhouse gas emissions.
Minister Creecy believes this is consistent with the broad policy architecture SA has put in place to implement the Paris accord goals relating to mitigation, adaptation and financing.
In October last year South Africa announced its revised Nationally Determined Contribution (NDC) which aims to reduce carbon emissions to a trajectory range of 350 – 420 Metric tons of Carbon Dioxide equivalent (Mt Co2-eq) by 2030. Minister Godongwana’s pronouncements regarding future increases for carbon taxes in the second phase from 2026 onwards to 2030 will enhance the country’s ability to achieve our ambitious NDCs and allow South Africa to meet our commitments under the Paris Agreement on climate change.
In 2020, our country submitted the Low Emissions Development Strategy (LEDS) with the United Nations Framework Convention on Climate Change (UNFCCC). The carbon tax along with industry targeted carbon budgets and Sectoral Emission targets (SETs) are part and parcel of the mix of mitigation measures aimed at reducing South Africa’s greenhouse gas emissions profile.
“At the time of releasing the NDC we said these targets can be achieved with a well-structured plan by major emitters, as well as access to investment and financing. We have no doubt that the trajectory for carbon tax increases will act as a powerful incentive to speed up the development of appropriate plans by high emitters ,” said the Minister.
In noting the three year delay in the start of the second phase of the carbon taxes, Minister Creecy said this delay will allow time to synergise instruments such as carbon budgets with the carbon tax, and finalise mechanisms for accounting and compliance. It will also give Parliament an opportunity to enact the Climate Bill which was adopted by cabinet late last year.
For further media enquiries contact:
Albi Modise
Cell: 083 490 2871