Comments on the Carbon Tax Policy Paper issued by National Treasury in May 2013

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2013

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Energy Research Centre

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Energy Research Centre, University of Cape Town.

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University of Cape Town

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Abstract
Our analysis of the carbon tax as proposed in Treasury’s policy paper is that it is both low relative to the required task and includes a complex set of exemptions. The effective tax rate of R12-48 / t CO2-eq is too little to transform South Africa’s energy economy, and does not make a sufficient contribution to bending the curve of our national greenhouse gas (GHG) emissions, so that it starts following a benchmark ‘peak, plateau and decline’ GHG emission trajectory, as set out in our climate policy (RSA 2011).
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