Reminder: Carbon Tax Policy Paper open for comment

Following a 2010 discussion paper, National Treasury has released a policy paper on a carbon tax. Finance Minister Pravin Gordhan had said in his 2013 budget speech that the tax will come into effect on 1 January 2015. The tax rate remains at R120 / t CO2-eq, though with exemptions to many sectors, the effective rates are R12 to R48. Of key importance is the design details, including the rate, threshold, treatment of energy-intensive industries and use of revenue to shield poor communities from any economic burden.

The full document is available at

A press release outlines the highlights:

The document is open for comment until August, see


Gigaba hints to new Eskom support after ‘difficult’ tariff ruling

Mining News 22 April 2013.

A joint Eskom, Department of Public Enterprises (DPE) task team would “within weeks” deliver its verdict on the implications of the regulator’s February decision to grant the utility yearly tariff increases of 8% between 2013 and 2018 instead of the requested 16%.

The recommendations arising from the analysis could include policy proposals related, for instance, to issues such as the implementation of a mandatory energy conservation scheme (ECS), as well as suggestions of possible further shareholder support for the State-owned utility…


Sasol warns of possible unintended carbon-tax consequences 11 March 2013.

The unintended consequences of South Africa’s proposal to introduce a carbon tax as from January 1, 2015, had to be analysed, Sasol CEO David Constable said on Monday.

Speaking following the release of the energy and chemical group’s interim results, Constable noted that South Africa would be joining a group of only three countries to have introduced carbon taxes and, therefore, urged the authorities to engage with stakeholders to “better understand the unintended consequences of what that means”.

The details of the tax proposal were likely to emerge later this month, when the National Treasury releases an updated policy paper…


Future baseload configuration for South Africa – event 26-28 November Cape Town

Clarion Conferences 13 November 2012.

One of the major topics to be discussed at the 6th Powering Africa: the Finance Options (PA:FO) in Cape Town, 26-28th November, will be South Africa’s recent government announcement on its procurement projections for base-load capacity.

With only 2 weeks remaining, book your place now to participate in discussions with the following stakeholders:

Karen Breytenbach, Senior Project Advisor at the National Treasury Department will discuss government plans for the procurement of baseload capacity from independent power producers (IPPs) from future coal-fired, gas-to-power and hydropower plants.

Kouassi N’Guessan, Managing Director, Compagnie Ivoirienne de Production de l’Electricité – Ciprel is invited to discuss the obstacles in financing large thermal power expansion in the Ivory Coast.

Mark Pickering, Special Adviser at Globeleq will give a developers’ perspective on the first round of South Africa’s renewable energy IPP procurement programme as well as discuss the challenges in future phases.

Peter Ballinger, Director Business Development, Overseas Private Investment Corporation (OPIC) and Rick Angiuoni, Regional Director- Africa, Export-Import Bank of the United States will look at how development finance can best support growth in Africa’s renewable energy industry.

– Liliang Teng, Chief Marketing Officer, China-Africa Development Fund Director will be focusing on how the debt resources from Chinese banks can best support the development of Africa’s power sector

Not to mention other topics that the participants listed below will raise during this pre-eminent dialogue.

PA:FO is your opportunity to engage with decision makers in the power industry about how to grow the sector and meet projected demand.  Failure to do so will have far reaching economic and political consequences. With limited hotel rooms still available, we recommend that you register online now . Alternatively, please do not hesitate to email me for further details.

Best regards,

Amy Offord
Marketing Manager
EnergyNet Ltd

No decision yet on carbon tax — Gordhan

Business Day 27 June 2012.

Finance Minister Pravin Gordhan says there has been no decision yet on a carbon tax for South Africa.
“We have had a number of engagements with different stakeholders and will continue to have engagements. There is no decision yet on the carbon tax. We are listening very carefully,” he told a breakfast event organised by the Progressive Business Forum on the sidelines of the African National Congress (ANC) policy conference on Wednesday.

Finance Minister Pravin Gordhan said in February that the government wanted to introduce a carbon tax in 2013-14, in a move to reduce greenhouse gas emissions…

(Editorial note: Deciding to do nothing whilst you are deciding is a decision in itself and will have consequences. In this case, further entrenchment of carbon-heavy enterprises.)

Eskom moves to secure five-year tariff visibility as it initiates MYPD3 process

Engineering News 22 June 2012.

Eskom confirmed on Friday that its third multiyear price determination (MYPD3) application to the National Energy Regulator of South Africa (Nersa) would be for a five-year period, rather than the three-year horizon that prevailed during the first two MYPD periods…

Determining carbon tax rate a ‘tough balancing act’ — Treasury

Business Day 29 Feb 2012.

DETERMINING a rate for the carbon tax the National Treasury is to introduce in the 2013-14 financial year was a tough balancing act, Treasury deputy director-general Ismail Momoniat said on Wednesday.
Documents released with Finance Minister Pravin Gordhan’s budget last week proposed a tax of R120 a ton of carbon dioxide equivalent over a tax-free threshold of 60%; with additional concessions for process (manufacturing) emissions and for trade-exposed sectors…