South African President, Matamela Cyril Ramaphosa has signed a policy into law that will place a tax on carbon on the country’s leading polluters.
Ramaphosa’s African National Congress party came back with a reduced majority in the elections earlier this month. Despite climate change taking a back seat in this campaign, the government got around to implementing a tax that has been under discussion since 2010.
In a statement put forth by the treasury, they say: “Climate change represents one of the biggest challenges facing human kind, and the primary objective of the carbon tax is to reduce greenhouse gas (GHG) emissions in a sustainable, cost effective and affordable manner”
The tax will start at 120 rand a tonne of CO2, which equals eight US dollars. In the first phase of the policy, polluters will get 60-95 per cent of carbon allowances free. This will bring the effective tax rate down to R6-48/t. These rates will be reviewed before the second phase between 2023 to 2030.
Coal for Energy:
South Africa relies on coal for most of its energy, and politically the priority for the electricity sector has been to stop blackouts, and to get rid of the state owned utility Eskom’s debt.
South Africa uses dirty methods for most of its energy, and remains the biggest emitter of carbon in the continent, despite the fact that Africa is one of the lowest global emitters.
The country’s mining sector happens to be a major employer, but they are struggling with unreliable power and high costs of labour.
The Blueprint for 2030:
The government is aiming to make 1GW of coal capacity before it turns to gas, nuclear and renewables, leading to 8.1 GW of gas, 2.5 GW of nuclear, 2.5 GW of hydropower 5.7GW of solar and 8.1GW of wind.
It’s Not That Easy:
Thousands of protesters have taken to the streets in angst against the government who they believe is not taking a retroactive approach to climate change.
According to the Climate Action Tracker rates, South Africa’s climate targets are “highly insufficient.” They are a confirmed climate hotspot, and will warm at twice as much as the global average.
For a fair contribution to ensuring that global warming is within manageable levels, South Africa must halve its carbon emissions in the next six years. In its current form, the carbon tax will not allow them to achieve that.
More on The Carbon Tax:
The carbon tax will put a price on greenhouse gases that are emitted through the production of goods and services. It will neutralise the social and environmental costs of carbon, making it a critical tool in the fight against climate change.
Many South Africans in cities like Limpopo to the Western Cape are negatively impacted by climate change.
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