South African President Cyril Ramaphosa has signed into law a carbon tax to cut emissions in the continent’s worst polluter, the Treasury said Monday, drawing cautious praise from environmentalists.
The tax, a rare step for an emerging economy, will be levied from June 1 on greenhouse gases from fuel combustion and industrial processes and emissions.
The tax was first planned in 2010 but has been delayed by opposition from business and industry in a country struggling with low growth and unemployment near 28 per cent.
“Climate change represents one of the biggest challenges facing humankind, and the primary objective of the carbon tax is to reduce greenhouse gas emissions in a sustainable, cost-effective and affordable manner,” the Treasury said in a statement.
It said the tax was part of South Africa’s efforts to meet the global climate change agreement negotiated in Paris in 2015.
Set at 120 rands (8.30 USD) per tonne of carbon dioxide, the tax will be largely offset by allowances to lower it to an effective rate of between six and 46 rands per tonne in the first three years.
South Africa — which relies largely on coal for its energy supply — is the 14th largest polluter in the world and the largest in Africa, according to Greenpeace.
The tax is set to rise at two per cent above inflation, currently at 4.5 per cent, until 2022 and in line with inflation afterwards.
AFP
352
😃+
add a comment
You Might Also Like
US inflation remains high despite lower petrol prices
329
Fast rising prices continued to trouble the US economy last month, though a drop in petrol costs provided some relief....
Coronavirus: Biden’s $1.9tn Covid relief bill passes House vote
302
President Joe Biden's $1.9tn (£1.4tn) relief plan to help Americans during the Covid pandemic has been approved in the House...
Australia passes law to make Google and Facebook pay for news
333
Australia has passed a world-first law aimed at making Google and Facebook pay for news content on their platforms. The...
Facebook blocks Australian users from viewing or sharing news
328
Facebook has blocked Australian users from sharing or viewing news content on the platform, causing much alarm over public access...