Carbon Tax Bill is a benefit for all of South Africans
1 June 2019 saw the Carbon Tax Bill be officially implemented in South Africa. But what does this mean for the country and how does it affect the consumers and businesses?
South Africa is on a fast track to play a greater role in the world, as part of global efforts to reduce greenhouse gas emissions. With climate change posing a threat to humanity, the Bill is a benefit for all of South Africans, as part of the country’s contribution to the world.
The South African government has made commitments to reduce the country’s greenhouse gas emissions up to 42% by the year 2025. This is because they have recognised the importance of reducing carbon emissions and foresee the benefits that a low carbon economy can bring.
The positives of the Carbon Tax Bill include:
Simply put, carbon dioxide emissions and other greenhouse gases are changing the climate. From an environmental point of view, the bill will contribute to improving sustainable development, not just by South Africa, but as a global effort. The Bill is therefore intended to encourage people, businesses, and governments to produce less greenhouse gases, which in turn will help the environment.
Carbon tax will reduce emissions by increasing the cost of carbon-based fuels which will motivate companies to switch to clean and renewable energy. These include solar, wind energy, and hydro-powered sources – research has shown that renewable energy has far reaching benefits for the environment.
By implementing the carbon tax, it subsequently encourages companies, people and the government to use fewer emissions. As businesses prepare their budgets accordingly to accommodate the new Carbon Tax Bill, there is hope in that they can convert to renewable energy.
A major advantage is that renewable energy will create thousands of jobs rather than eliminating them. “The full portfolio of 36 preferred bidder wind projects, procured to-date, are expected to generate 32 138 job years, over their 20-year operational period”, states Brenda Martin, CEO of SAWEA.
By implementing carbon tax it can also make more money for businesses by means of carbon credit. Businesses will only be allowed to use a certain amount of carbon for production. However, if companies don’t use up their full carbon allowance they can trade it in for credit.
While there is still a long way to go, it is a significant step for Africa as a whole. Africa has experienced environmental challenges, but with the Carbon Tax, this will see South African companies, in Africa, converting to renewable energy across the board. This will then see an environmental change across Africa and not just South Africa.
Final Thoughts – The positives of the Carbon Tax:
- Motivate companies to switch to clean and renewable energy.
- By implementing the carbon tax, it subsequently encourages companies, people and the government to use fewer emissions.
- An environmental change across Africa and not just South Africa.