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South Africa's carbon tax should stay, climate scientists say
Summary
The minister of electricity and energy has proposed suspending South Africa's carbon tax after reported pressure from fossil fuel lobbies, and climate scientists argue the law should remain because it is legislated and tied to the country's climate obligations.
Content
South Africa's minister of electricity and energy has proposed suspending the country's carbon tax after reported pressure from fossil fuel lobbies. The carbon tax was established in the Carbon Tax Act of 2019 and is based on a polluter-pays principle. The law is entering its second phase this year, when the tax rate is due to increase, and parliament also passed a Climate Change Act in 2024.
Key points:
- Minister Kgosientsho Ramokgopa has proposed suspending the carbon tax amid reported pressure from fossil fuel lobbies.
- The Carbon Tax Act (2019) initially set a rate of R120 per tonne, though some companies received reductions to R6–R48 per tonne.
- The tax is entering its second phase this year and a planned rate increase is due; annual revenue from the tax is estimated at R1.5 billion.
- Parliament passed the Climate Change Act in 2024 and the carbon tax is described as central to meeting South Africa's Nationally Determined Contributions under the Paris Agreement.
- The article's authors say suspending the tax would be unlawful, could weaken rights protections linked to a healthy environment, and could affect South Africa's credibility in international climate diplomacy.
Summary:
Scientists and researchers argue the carbon tax is legislated and tied to national climate commitments, and they warn that suspension would raise legal and diplomatic concerns. The minister has proposed a suspension while the tax is due to increase as it enters its second phase this year. Undetermined at this time.
