Africa Energy Indaba Reveals Mega Opportunities Related to South Africa’s Carbon Tax Policy

2019/07/30 | AEI Admin | blog

The recent passing of South Africa’s carbon tax policy proves a step in the right direction towards building a sustainable and energy-efficient African energy sector.

Johannesburg, 30 July 2019; The South African government recently introduced its carbon tax policy to contest the global issue of climate change caused by carbon dioxide emissions and other greenhouse gases (GHG). A carbon tax puts a price on those emissions, urging people, businesses, and governments to produce less of them, thereby resulting in a low-carbon economy and making polluters accountable to pay for their negligence in this regard. The proposed legislation was signed into law by South African president, Cyril Ramaphosa, on 1st June 2019. The passing of this law has rendered South Africa one of forty countries globally to devise such a carbon-pricing plan.

The response by economists, industry leaders and environmentalists has been equally positive. The new regulation empowers South African authorities to levy tax on greenhouse gases and industrial processes that contribute excessively to GHG emissions. Industry leaders are of the opinion that South Africa’s carbon tax policy will guarantee a major shift from fossils fuels towards the consumption of cleaner energy sources.

Leading industrialists and environmentalists have demonstrated confidence in the carbon tax policy. They purport that the motion has potential to introduce new opportunities of innovation as manufactures and industries strive to adopt cleaner technologies and invest substantially in energy-efficient methodologies. Policy makers urge the industrial sector to embrace this opportunity by adopting renewables and various other low carbon measures.

Moreover, WWF South Africa has welcomed the policy and has subsequently applauded the resolute efforts of the South African government for implementing climate change in the quest for a cleaner, more sustainable environment and economy.

South African policy makers have devised realistic notions to channel the revenues generated by carbon tax into energy-efficient projects. Research conducted by the University of Cape Town offered various pragmatic recommendations, such as using the revenue generated by carbon tax to fund housing projects. The returns can also be allocated to fund passive solar design, energy-efficient insulation and solar water heaters. The Swiss government similarly adopted this model and funded its ‘Green Home Programme’ with revenues generated from carbon tax. In addition, Chile used its carbon tax returns to fund multiple social security programmes, particularly education.

The Africa Energy Indaba remains Africa’s most prestigious energy event and has demonstrated invaluable initiatives in forging significant business liaisons and gateways for stakeholders into new markets along with exploring challenges and opportunities to promote innovation in energy operations. This year’s symposium is set to assemble African energy ministers, more than 350 global and African energy CEOs, media representatives and energy experts from more than thirty countries. The conference aims to seek viable solutions for adequate energy generation across the continent, and to discuss the prospects of a thriving African energy sector with emphasis on carbon tax and its ensuing implications. Furthermore, attendees will be educated on cost-effective strategies to implement renewable and cleaner energy methodologies, thereby promoting energy efficient practices.

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