Technical Note #28 SA Carbon Tax Offsets
This summary is based on the Draft Regulations: Carbon Tax Offsets published by National Treasury on 20 June 2016.
As part of the introduction of the South African Carbon Tax, the South African government went the same route and included an offsetting component into the design of the Carbon Tax which is scheduled to be introduced in mid-2017. In essence it allows a clay brick producer to reduce its Carbon Tax exposure by submitting Carbon Tax Offsets, derived from eligibly Carbon Credits under one of the international Carbon Standards to the tax collection agency. A Clay brick producer can either generate its own Carbon Tax Offsets from an in-house mitigation project or purchase available Carbon Credits/Carbon Tax Offsets on the market.
Download Technical Note #28 on this regulation below