South African Journal of Economic and Management Sciences
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The inventory will also undertake and report analyses of emissions trends, including detailed reporting on changes in emissions intensity in the economy and a comparison of actual GHG emissions against the benchmark national GHG emission trajectory range. DEA contemplates a mandatory reporting of emissions data for entities companies and installations that emit more than 0.
Qualifying entities will also be obliged to report energy use by energy carrier and other data as may be prescribed. It will be developed, tested and commissioned by approximately Carbon tax which will start from January 1, should be implemented gradually and complemented by effective and efficient revenue recycling to contribute to significant emissions reductions.
Carbon tax will therefore be introduced as part of a package of interventions along with the existing policies to ensure that the primary objective of GHG mitigation is achieved. South Africa has a set of other fiscal measures to combat climate change and they will be mapped in consideration of carbon tax. For example, it has levied electricity generation tax to non-renewable electricity generation since July 1, To ensure the effective pricing of carbon and facilitate the structural change currently taking place in the energy sector, a gradual phasing down of the current electricity levy will be considered.
This is complementary mechanism in anticipation of the implementation of the proposed carbon tax. In South Africa, a number of modeling studies have been undertaken since to simulate carbon tax and assess the potential impacts of the introduction of a carbon tax instrument. Such studies were necessary to help both policy decision and specific designing of carbon tax.
A computable general equilibrium CGE model used by University of Pretoria and the World Banka Standard General Equilibrium STAGE model in long-term mitigation scenarios and a dynamic computable general equilibrium DCGE model all found that carbon tax will bring about a considerable reduction in carbon emissions and can bring net welfare and economic benefits when some conditions are met. A transparent, credible and competitive emissions trading mechanism is probably not feasible in South Africa over the medium term because:.
South Africa seeks to reduce its reliance on fossil fuels and the carbon intensity of its growing economy. The country has a dual objective to make these reductions while ensuring economic growth, increased employment, and reduced poverty and inequality.
In absolute terms, total GHG emissions in and amounted to and million tons respectively. The energy sector emissions i. Agricultural and industrial sectors account for 8.
South Africa is committed to contributing its fair share to the global GHG mitigation effort and has aspired to its emissions peaking between andremaining stable for a decade and declining in absolute terms from around as elaborated in the National Climate Change Response White Paper. Inthe White Paper on the Renewable Energy Policy of the Republic of South Africa recognized climate change as one of the major environmental threats facing the world today.
Within the framework of the Integrated Energy Plan IEP released inpolicies should recognize the need to balance the requirements of energy supply security and low-cost, affordable and accessible energy with other imperatives, such as environmental and social development. It recognized energy efficiency as one of the most cost-effective ways of meeting the demands of sustainable development and providing environmental benefits. Inthe Energy Security Master Plan for Electricity prepared security of supply standards for the generation and transmission of electricity, and proposed several interventions for achieving the respective adequacy measures.
The IPAP identified renewable energy industrial development as one of the green growth potentials that should be explored. Inthe New Growth Path identified the green economy as creating new jobs through utilizing technological innovation, expanding existing public employment schemes to protect the environment, and producing renewable energy and biofuels.
Inthe Integrated Resource Plan IRP for Electricity was prepared aiming to ensure new electricity generation capacity for the country for the period — Afterthe technology learning rates on new renewable options should lead to lower costs.
It also recognized that a mix of economic instruments including MBIs such as carbon taxes, ETS and incentives complemented by appropriate regulatory policy measures were essential to drive and facilitating mitigation efforts and creating incentives for mitigation actions across a wide range of key economic sectors. Inthe National Planning Commission NPC held low-carbon workshops involving a wide range of participants from government departments, the private sector, academia and civil society.
The South African government introduced several programs to mitigate carbon emissions. More news from the Department of Environmental Affairs is available here. More documents from the Ministry of Environmental Affairs are available here. Further, the World Bank accepts no responsibility whatsoever for any consequence of their use.
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Allocation of Implementation Funding: Policy Mapping on Carbon Tax Carbon tax which will start from January 1, should be implemented gradually and complemented by effective and efficient revenue recycling to contribute to significant emissions reductions. Modeling Carbon Tax In South Africa, a number of modeling studies have been undertaken since to simulate carbon tax and assess the potential impacts of the introduction of a carbon tax instrument.
Assess the impact and refine the design features of a proposed carbon tax and complementary offset mechanism Sources: South Africa ; Carbon Tax Policy Paper for public commentMay Emissions Trading A transparent, credible and competitive emissions trading mechanism is probably not feasible in South Africa over the medium term because: The oligopolistic structure of the energy sector is likely to reduce efficiency gains that would result from such a mechanism The lack of a sufficient number of industry players and appropriate market structure with diverse abatement costs suggests limited opportunities for domestic trade that could result in inappropriate permit prices The institutional capacity to manage an emissions trading system is lacking and will not be in place in the foreseeable future Source: It is further proposed that the tax rate of a R per tCO2-eq be increased at a rate of 10 per cent per annum until the end ofin order to provide a clear long-term price signal.
This annual rate of increase will be reviewed duringwith the intention to announce a revised annual rate of increase in the Budget.
An offset program will be included to allow these industries to invest in projects outside their normal operations to help reduce their carbon tax liabilities.
These projects cover bio-fuels, energy efficiency, waste management, cogeneration, fuel switching and hydro-power, and from sectors like manufacturing, mining, agriculture, energy, waste management, housing, transport and residence. National Context Mitigation Target South Africa seeks to reduce its reliance on fossil fuels and the carbon intensity of its growing economy.
Regulatory Context Inthe White Paper on the Renewable Energy Policy of the Republic of South Africa recognized climate change as one of the major environmental threats facing the world today. News Minister Edna Molewa on the commitment of the South African Government to move towards a lower-carbon economy and society December 1, The South African government introduced several programs to mitigate carbon emissions.
Technical support study English October South Africa: Audio-visuals from the Ministry of Environmental Affairs are available here. Photos from the Ministry of Environmental Affairs are available here.
See Project 90 by South Africa - Session 8B Benchmarking. Final Market Readiness Proposal. The Case for a Carbon Tax. Expression of Interest Presentation. Expression of Interest Letter. Expression of Interest EoI. Broad Overview on Domestic Offset Potential. Carbon Tax and Energy Policy. Carbon Tax Policy Paper for public comment. Emissions intensity benchmarks for the South African carbon tax: Stakeholder Engagement Case Study: Why Emissions Trading - South Africa. South Africa's Policy Interaction Experience.