Tag Archive | carbon emissions

Treasury sticks to its guns on carbon tax

2015, only if implementable….

nattreasury logoNational Treasury is still planning to introduce a carbon tax on January 1, 2015, but chief director for economic and tax analysis, Cecil Morden, told business that government will only move ahead when it is satisfied implementation possibilities.

In Parliament, when asked by members of the finance standing committee if this was “yet another revenue tool”, he said the primary objective of implementing carbon taxes was to change future behaviour before it was too late.

Doing our own thing

“The clock is ticking”, said Morden.   He asked parliamentarians not to diminish South Africa’s role as a potential leader on the issue with carbon tax. “The USA is paralysed and if we do nothing because China and the USA does nothing, we would have lost the opportunity to start at a lower level, do things slowly and sensibly, with marginal steps towards inevitable change.”

Confronted at a National Business Initiative meeting in Johannesburg calling for more information on the tax and answering further queries as to such a tax was necessary at this stage of South Africa’s development, Morden said that more clarity would be provided in the draft legislation.

At the moment a policy document on the tax has been published by Treasury for public comment.

Phasing in

The tax is proposed at a rate of R120/t of carbon dioxide equivalent, increasing at 10% a year during the first phase, from 2015 to 2019 and the legislation, of which a draft has yet to be published as a result of the current public comment period. This would give the detail, Morden said. It would describe the tax-free thresholds for each sector and possible offset structures.

Morden acknowledged that there might still be gaps, but encouraged stakeholders to highlight these in their written responses and to make proposals on how these could be filled.

We’re not tax collectors

Again he denied, as he did to opposition members in Parliament, that the carbon tax was nothing more than a revenue-generation exercise and disagreed flatly with the argument that such tax proposals were not a priority in the context of the country’s other socio-economic, skills and infrastructure problems.

Morden countered his Johannesburg questioners in the same manner as he did in Parliament on to why the tax was necessary; saying, “We do not have to have a carbon tax to raise revenue as suggested and the gradual introduction of a carbon tax should been seen as a contribution to the international agreements on climate response that South Africa has already agreed to and the consequent necessity to reduce South Africa’s greenhouse-gas emissions.

Tax to be fed back somehow

The National Treasury would not, however, entertain “hard” earmarking or ring fencing of the revenue accumulated but would consider other recycling mechanisms, including “soft” earmarks in future Budget undertakings; reducing other taxes and levies; and the introduction of new incentive schemes.

More background articles on subject
http://parlyreportsa.co.za//energy/gigaba-to-line-up-eskom-for-carbon-tax/
http://parlyreportsa.co.za//cabinetpresidential/carbon-tax-not-popularly-received-by-parliament/
http://parlyreportsa.co.za//energy/parliament-briefed-on-new-climate-response-policy/

Posted in Cabinet,Presidential, Energy, Enviro,Water, Finance, economic, Health, Mining, beneficiation, Public utilities, Special Recent Posts, Trade & Industry0 Comments

New Air Quality Act will deal with major polluters

Three areas under focus…

emissionsIn terms of who is in trouble in terms of the newly proposed Air Quality Act amendments, the chief director, air quality management at the department of environmental affairs (DEA), told parliamentarians that there were three priority areas that had been identified in South Africa where ambient standards are being exceeded.

These are the Vaal Triangle airshed, which could be said to be Orange Farm south to Sasolburg; the Highveld area, roughly Witbank south to Ermelo and back up to Delmas; and the Waterberg-Bonjala area which is essentially Brits through to Limpopo. The minister believes that that these areas, said Dr Mduli, should be “declared” as such in terms of the law, as soon as possible.   In the case of the Waterberg-Bonjala area, it was more a case of what was being planned for the area, than what existed at the moment, she said.

de Lange gets tough

Adv. de Lange, chair of the water and environmental portfolio committee, who were being briefed on current developments under the National Environmental Management: Air Quality Act, asked why Durban South was not a priority area in terms of DEA’s estimations.   Dr Mduli replied that recent improvements in ambient air quality in that area had shown that it need not be rated as such.

The main sources of pollution in the three priority areas were emissions from industrial complexes; the domestic burning of dirty fuels in highly populated areas; mining operations; and vehicle emissions, she said.

Hotspots named

She named the industrial “hotspots” as the Vaal Triangle area, this being Sasolburg, Vereeninging, Vanderbijlpark, Meyerton, Orange Farm and Soweto. Also, the Highveld, which mainly suffered from SO2 (sulphur dioxide) problems, this being the generalised Ekurhuleni area, Delmas, the eMalaheni area and Witbank, the Govan Mbeki area and Secunda, the Steve Tshwete area and Middeburg, the Msukaliqwa area and Ermelo and the Lekwa area which took in Standerton.

PM10 problems (heavy dust particles) existed in Ekurhuleni, Witbank, Secunda and Ermelo, she told parliamentarians, but in general terms the department was establishing a national air quality indicator where, by using the 45 monitoring stations that existed in South Africa, there was a possibility of establishing a “constant” that could be evaluated against comparison.

Getting together

Dr. Mduli said that it was not just a question of penalising pollutants that, in many cases, were providing valuable jobs.  It was more a case of working with the industries involved to provide answers. An example, she said, was Engen in Durban South, where a compromise had been found between saving jobs and achieving an outcome which resulted in better ambient air quality.

The issue of offsets to business as incentives, either as tax or other credits, was raised by parliamentarians as a benefit for results achieved with improved ambient air qualities for their “airsheds” but Dr Mduli said whilst these might apply to industry where there were routes to follow, the answer had yet to be found how to apply incentives to communities where traditional fuels producing carbon emissions in highly densely populated areas were the problem.

Community answers

Insofar as industry incentives were concerned, she felt that offsets were not so much a problem and which no doubt were to be considered but in the case of communities, where just individuals were concerned, a lot of the problems would be solved with simple electrification being applied as the answer, as distinct from coal or wood burning. As a result of all this, DEA monitoring stations tended to be located in highly populated areas in order to measure results, rather than emissions.

Dr. Mduli said that for this reason, so DEA could understand better the effects on communities, monitoring was on results, not on emissions, as mostly the bigger particles were in fact the biggest contributor to poor health amongst communities. “Command and control systems by regulation as conducted with industry cannot be used here”, she said and “community persuasive systems had to be envisaged”, she added.

Added to this was the winter atmospheric inversion problem on the Highveld, which tended to trap bigger particles on a long-term basis and contributed to health problems.

Eskom again in the picture

It was noted by Dr Mduli, in displaying graphs, that SO2 played a large part in the national industrial emissions problem and Eskom were the certainly the greatest polluter in this regard, she said. But offsets would not help here, she said as Eskom had other financial priorities, although electrification of townships and all rural areas were amongst Eskom targets to fight the problem of pollution.

In describing the new regulations to follow from the Air Quality Act amendments, she said a number of events would follow in the next few months. Firstly, section 21 of the Act required a list of activities to be published and which had been attended to, the control of which would define the associated regulations necessary to finalise environmental emission standards as an answer to the climate response issue.

The rest of the proposals…

Secondly, section 22 and onwards would include a declaration of control of processes and which was constantly under revision; for example, even the control of declaring mobile asphalt plants might be considered, she said.

Section 29 and following sections involved the definition of greenhouse gasses as pollutants as defined internationally and requirements that followed from global agreements. Then followed clauses which would allow regulations on a “hands on” basis, bringing controls and regulations down to a localised basis, such as sugar cane burning in KwaZulu Natal.

Get a big fish

Adv. de Lange concluded that DEA, in his summing up of the new amendments, had “done well” and he noted “his surprise” at the advanced stage of air quality controls in the country and successes to date. He stated, however, “that what was needed now was a legal success in a major test case against a large industry polluter to show that DEA meant business”.

It was noted in the presentations that Cape Town in general had dropped as far as excessive quality emissions were concerned but that Goodwood, as a residential area had suffered particularly insofar as SO2 was concerned and this had to be investigated. Other issues that concerned DEA on air quality emissions was that mercury readings in emissions were gaining ground, mainly in coal producing areas.

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Parliament briefed on new climate response policy

climatechange2DEA outlines its climate response plans…..

Ms Judy Beaumont, deputy director-general for climate change in the department of environmental affairs (DEA), has told parliamentarians that the objectives of the national climate response policy were to manage inevitable climate change impacts through interventions that built resilience and emergency response capacity and to make a fair contribution to the global effort to stabilize green house gas (GHG) concentrations.

The department has made a number of presentations to parliamentary portfolio committees in recent weeks updating members on a six-month basis following the public hearings in June of this year resulting from the introduction of the White Paper on National Climate Change.

What can be done, says DEA

Ms Beaumont set out DEA’s current position, resulting in a National Climate Change Response Policy.  She said that her department has developed and detailed what the department calls “deliverables”.

She gave details of the plans to implement the programmes being run currently and the process being used to effect the general response policy which she described as “mitigation, adaptation and monitoring”. She also described DEA’s relationships with other government departments regarding their climate mitigation programmes and with national treasury regarding finance.

All in the same direction

Beaumont said that what had come out of the hearings was the need for a common set of climate scenarios and likely impact scenarios and it was necessary to build in a system of monitoring the situation as it developed so that all knew exactly on an ongoing basis what the picture was and how climate change was affecting the country, both economically and from a disaster aspect.

The major mitigation programmes to reduce carbon emissions needed to have a common set of desired outcomes so all knew what the target was, she said, and all the “flagship” climate change programmes being run in various parts of the country had to be in harmony with common criteria established under the response document, she noted.

Carbon budgets to follow

She said once the desired emission reduction outcomes (DEROs) had been defined then  carbon budgets were to be drawn up for relevant economic sectors.

Various departmental officials detailed some of the current issues under focus, one being a draft of South Africa’s monitoring and evaluation system framework by October 2013, followed by the report on the same subject to the UN Framework Convention on Climate Change by December 2014.

Some of the adaptation programmes on climate change were the dept. of agriculture’s land care plans; sectoral agro and agro industry programmes; an atlas on climate change and much research.  From the department of water affairs there was water conservation and demand management and from the South African weather service came a flow of forecasting, early warning and research, coupled with work through the national disaster management sector.

All headed towards agreed responses actions

She added that an important contributor with programmes linked to others was the department of cooperative governance where there was “mainstreaming of disaster risk reduction planning in progress with response toolkits”.  DEA had established, Ms Beaumont said, “that there should be a common set of climate scenarios, impact scenarios in key sectors and a need to assess costs and agree adaptation responses per sector.”

Into the entire process. DEA said, account had to be taken of the energy efficiency strategy being prepared by the department of energy, its integrated energy plan and the renewable energy independent power producer programme.

Scenario planning in three stages

On scenario planning, parliamentarians were told that the intention was to “project and evaluate the socio-economic and environmental implications of potential impacts of anticipated climate change and climate variability and the adaptation responses options available” for identified sectors in South Africa over the next decade and until 2025; in the medium for the next two to three decades until 2050 and with long term scenario visualisation to the end of the century.

The shorter term scenarios were already in progress and due for completion and funding had come from the German development organisation, GIZ, to conduct phase one of the long-term scenarios, where initial work had been undertaken.

Links with the national committee on climate change and all such scenario planning was in place, the committee was told.

Carbon Tax still  an imponderable

In answer to questions, DEA said that on carbon tax and a “carbon budget interface” an analysis of the different policy approaches and interfaces between the carbon budget and carbon tax instruments was currently underway. In funding much of the climate change response work in South Africa, parliamentarians were told, national treasury were leading the debate on this, if indeed there was to be a carbon tax, and were to finalise any carbon tax policy for national debate to counter the rise in GHGs.

A tax rate of R75 per tonne of CO2, rising to approximately R200 per tonne over time had been suggested “to save South Africa from potential catastrophic changes in its climate”  but as one parliamentarian told DEA, with global recession hitting business and industry to the extent it has, now and into the same scenario future, it has become doubtful who is the most threatened party.

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Integrated Energy Plan (IEP) not crystal ball gazing, says DOE

Department reports to Parliament on energy plan.

It must be understood that the integrated energy plan (IEP) for South Africa  was going to be a “simplistic representation of a number of possible future outcomes encapsulating the state of energy demand and supply that could materialize in light of current policies and macroeconomic trends.  The IEP will not be a representation of a most likely energy future.”

So said Ms Tshidmidzi Ramendozi, chief director, energy planning, department of energy (DOE) when addressing parliamentarians of the portfolio energy committee on the state of the IEP, where the DOE had arrived at in terms of producing such a plan and when it was likely to come about.

Under questioning Ramendozi estimated a final draft in the hands of the cabinet by  the middle of 2013.

The development of an IEP was envisaged in a White Paper on Energy in 1998 and the minister in terms of the National Energy Act of 2008 was then mandated to develop and publish such an IEP on an annual basis. The purpose of the IEP was described in the Act “to provide a road map of energy policy and technology development future energy landscape in South Africa to guide future energy infrastructure investments.”

Seven test cases would be studied in the current exercise, Ramendozi said, which would indicate what could happen if particular actions were taken. She was at pains to point out that such test cases were not really scenario planning exercises, which would have allowed for outside forces or factors over which DOE or those associated with energy generation had no control.

Major factors within the ambit of the planning exercise, she said, for projections in the IEP, were the original energy White Paper; the 2010 integrated resources plan; the national development plan; the new growth plan; the national climate change response paper; the national transport master plan; South Africa’s beneficiation strategy and the proposed carbon tax policy.

Parameters governing the base assumptions were, Ramendozi said, renewable energy targets; the fuel reserve margin; the limits governing annual carbon emissions and the penalties involved.   Naturally macroeconomic factors such as banking rates, economic growth and global oil prices were involved in the assessments.

From this base, for which DOE had to make certain assumptions on GDP factors forecast in the 2012 budget, was to take a middle, moderate growth scenario out of low to high growth patterns, and assume a certain amount of skills restraints into the future.    It also had to assume global oil price projections from the Energy Information Administration and, also to be accounted for, were international projections from the annual energy outlook documents of 2012 in order to establish some sort of formula to go forward.

Assumptions for various test cases could then be undertaken, Ramendozi said, with or without the new nuclear build programme; in one case with existing nuclear structures and one without and mothballing existing structures.  Such would form the basis in test cases one and two.

Then came test cases three and four, at which point Ramendozi referred to the national development plan which had presented a number of factors which had to be borne in mind although these directly affected the integrated resources plan (IRP) and were incidental to the IEP under consideration as far as test cases were concerned.

These factors were that as a net importer of crude oil, South Africa was very much a taker in the oil market and susceptible to fluctuating prices. Also to be considered were the new fuel specifications being considered and the fact that refineries were to be re-equipped to capacitate such and that South Africa would no doubts continue on its path of intensive use of fuel-powered vehicles but improving its national transport system generally.

She noted the options in the national energy development plan, as far as liquid fuels were concerned, and these were as DOE saw it – to build a new oil-to-liquid refinery; build a new coal-to-liquid refinery; upgrade existing refineries; import more refined product or build or buy a shareholding in a new refinery in Angola or Nigeria.  All this had to be considered at this point of the running of test models.

Turning to test case three in the process, Ramendozi said this included expanding existing refineries with greenfields operations. Test case four included upgrading or expanding refineries and possibly, in addition, increasing importation of refined product, allowing for consequent upgrades of port infrastructure and associated costs such as transportation.

Test cases five and six, DOE noted, included the issue of carbon emissions, which was based around South Africa’s international commitment to reduce emissions by 34% by 20120 and 42% by 2025. Factors to be considered were the findings of the long term mitigation exercise involved at the time which had established that South Africa’s energy use emissions constituted 80% of all emissions, 40% of which, a majority on a comparative generating basis, arose from the generation of electricity.

Test case five, Ramendozi said, therefore involved the issues of refurbishing the existing “fleet” of generating plants to meet targets set by the department of environmental affairs (DEA).  This would produce a result for this test case.

However, there was little doubt that such a “retrofit plan would still leave demand outstripping the supply of electricity” so that, as per test case six, the plan to be modelled would involve  “South Africa mothballing its (coal) power plants and investing solely in new technologies as a substitute.”

Ramendozi concluded that the issue of carbon tax finally arose in test case seven. Here, the impact of carbon tax on the choice of energy technologies throughout the entire value chain had to be considered, bearing in mind the DOE was aware of a current proposal to tax emissions of CO2 @ R75 per ton of with an increase of around R200 a ton.

For this modelling exercise and still to be completed, she said, was quality checking of the data collected; the actual configuring of the base for the test cases; subsequent analysis and evaluation and then the final report writing.

Stakeholders would be consulted before a draft report was issued, the draft report being considered first by cabinet before the draft became public.

MPs commented that quite obviously things were still therefore at a very early stage and were surprised that the DOE paper at this stage gave no evaluations of each energy source and no comments on job creation or job losses or skills so far reached.   Ramendozi replied to this, and a number of other similar questions on energy resources, that parliamentarians were confusing the IRP, which dealt with resources and the effects and consequences of their use, with the purpose of the IEP.

It was not the job of the IEP to evaluate and decide upon the quality of resources and their use or not.

The IRP was very much on the subject of electricity energy, she said, to repeated and similar parliamentary questions on coal issues and the future of coal as a primary industry.  Questions on gas reticulation and exploration off the Mozambique coast and what PetroSA were planning, for example, and similar issues in the hydrocarbons area, she noted, similarly involved specific resource evaluations and this was not what the IEP was about. She said the job in hand which looked at the whole sector in a broader sense.

“For example”, Ramendozi said, “when looking at the transport master plan it becomes quite evident that whilst improving rail transport systems, a knock-on result in a broader sense would be a swing perhaps from road to rail, meaning a different call upon the rail electricity need. This would be an IRP issue, however.”

This should answer many parliamentarian’s questions, she said, why there was so little to be said in the IEP on the specific issues surrounding liquid fuels in the planning process.

The IEP was to be a road map and the process leading to building such a plan would yet have to “unpack” many of the issues surrounding energy and the economy from a macro-economic viewpoint.  Such macro-economic issues as job losses and the use or over-use of water, for example, would indeed be in the considerations for individual test case models.

“This is going to be a particularly difficult aspect of preparing the IEP”, Ramendozi said, “because it involves cross-debate with many government departments, including treasury, environmental affairs, labour, health and transport, for example, and the final document needed to be both visionary and re-active to findings and take into account policy matters that had been adopted as courses of action”.

“What the IEP will not be”, she said, “is another IRP which evaluates resources but rather a document which will consider test case models, with or without certain weightings, based on inclusivity or excluding issues, and also to incorporate known supply options with given macro-economic factors.”

She commented, in reply to questions on the effect of carbon tax, that this would indeed be a “challenge” to assess, since whilst MPs saw this as an effect on the purse of the individual, DOE’s thinking on this at this very early stage might be to take the treasury viewpoint that the effect carbon tax could be countered by incentives in the system in the form of allowances, before costs reached the individual.

On augmenting the IEP with the liquid fuels strategy, Ramendozi said, that here again DOE was more concerned with producing transportation and demand factors at this stage. She said, in a similar vein, when asked about the Mathombo project, that her department could not even talk the need for a new refinery, “until we start running the various test case models”.

On questions regarding fracking and gas exploration activities in the Karoo, Ramendozi responded, “With all the geological and logistics issues facing fracking, we are hardly even considering this contribution in terms of the time frame of the IEP. We do not see Shellgas playing an effective role in the energy picture in the immediate future as far as short term test cases are concerned”.

She told parliamentarians that one of the test cases included natural gas related to electricity needs, compared with to gas to liquid technologies. However, she said the whole exercise was not to consider one resource against another but how to complement resources into a common system.

The IEP, she said, “must take on board government policy towards the environment, attitudes toward climate change and therefore such issues and water and water resources used in coal fired plants will have to be considered.   However, social issue answers are not something that will come out of the IEP”, she told parliamentarians.

In many cases we see the final IEP highlighting many issues but not addressing their manner of implementation”, she concluded.

Ramendozi said that in terms of producing the IEP, DOE would consider a reserve fuels margin of 19% and when asked as a final question by an MP what DOE were “going to do about the elephant in the room – the growth rate”, she responded that DOE had to follow exactly what treasury were stating for growth “otherwise all other related data would not make sense”.

Chair, Sisa Njikelana, concluded by saying the IEP presentation was the final document in an “important parliamentary year on energy matters,” stating that DOE had to get the concept behind the IEP right in their minds “before it moved into the nuts and bolts of the various test case issues”.

He said that the energy committee was to put on whole host of questions in writing to DOE based on a forthcoming parliamentary summation of the situation so far on the IEP, and this would be an exercise undertaken once parliament re-assembled in the New Year.

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Carbon Capture Storage Technology Underway in SA

SANEDI, the South African Energy Development Institute, told the portfolio committee on energy that work was being conducted on extraction of carbon dioxide from fossil usage and pilot drilling was taking place near Port Elizabeth on the geological storage of carbon dioxide at great depth.

Dr (Prof) AD Surridge of SANEIRI, the research body of SANEDI, said that in common with other countries and backed by the department of energy, Sasol, PetroSA, Eskom, the UK and Norwegian governments, Total, Anglo Coal, Xstrata, Exxaro and others, carbon capture storage as a system was a real possibility in South Africa.

This inland location for tests had been chosen for reasons of cost, but vast suitable geological areas had been located offshore in South Africa where storage for many hundreds of thousands of years would be safe.

Dr Surridge said, “It is not so much as to whether the technology works. We know it works”, he said. “Such has been operating at global sites for many years. It’s a question of scaling up the finance and doing things on a far bigger scale to get ahead”.

SANEDI operates as part of the Central Energy Fund (CEF) which also manages the operation and development of the oil and gas assets and operations of the South African government with its subsidiary, PetroSA. A CEF subsidiary, iGas acts is involved in the development of LN gas and LP gas.

Kevin Nassiep, CEO of the operating research body SANERI, told parliamentarians that in financing its various operational scenarios to conduct energy research across all aspects of energy in South Africa, it had submitted four financial models to Treasury varying from models to develop the institute as an independent entity with a full programme of projects, a model with gradual transition over a number of years to that of SANEDI in a survival mode.

He said that the fourth option had been chosen by Treasury in its budget and consequently SANEDI was just surviving. SANERI was operating at very low level insofar as its objectives were concerned and “the two building blocks of sustainable energy solutions to South Africa’s search for a low carbon economy, that of innovation research and energy conservation, were being undertaken at slow speed.”

SANEDI’s brief in terms of the National Energy Act was to direct, monitor and conduct energy research and promote energy efficiency through SANERI, Nassiep said. Their goals were to be in direct support of the department of energy (DOE) role and DOE’s energy policy, and to assist in all matters regarding climate mitigation.

He said that that in most matters regarding radical energy decisions, South Africa in each major topic had to decide whether to become an “innovator” by becoming a leader in that field; whether to be an “adaptor” and take existing standard prototypes and change these to suit South African systems or be a “follower” and simply “buy off the shelf” in order to meet cost restraints or because such suited the occasion.

Dr Willie de Beer, dealing with electricity energy distribution matters for SANEDI, said that with the collapse of the centralised electrical distribution concept known as EDI holdings there was a resurgence of suppliers pushing their own proprietary systems in the search for a better and “smarter” national supply grid. Consequently, conformity was a problem unless it was controlled.

Lack of funding in all aspects of the work being undertaken by the research body, SANERI, appeared to be the issue, Parliament was told.

Dr de Beer told parliamentarians that urgent decisions had to be taken in this regard to underpin economic growth and an inter government smart grid task group with a smart task team financed properly so that “plug and play” commonalised systems were adopted and a lead given by a common government “voice”.

But, he said, the “smart grid” was not emerging quickly enough because there were too many players and nobody was either prepared to invest properly or take risk. There was little in the way of team approach, he said, and intergovernmental participation across the board had not been achieved.

David Mahuma of SANERI described a number of biomass projects either converting energy from invasive alien plant life; biogas projects working in agricultural situations and mini-hydro schemes currently being investigated. This was all part of the “Working for Energy programme”, he said, and current focus was to help communities with pelletised bio-mass waste systems.

SANERI described to parliamentarians a number of projects including LPG driven taxis, which were succeeding in KwaZulu-Natal and a biomass piggery plant in Mpumalanga that was providing its own electrical energy needs and some to spare for the local grid.

 

 

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Gordhan gives out strong message on carbon tax

en:Primorye Power Plant in Luchegorsk, Primors...

Image via Wikipedia

Finance Minister Pravin Gordhan is reported to have told lawmakers in Cape Town that a revised carbon tax policy paper is definitely due sometime in the course of 2012 and that government has agreed in principle to the need to price carbon emissions and on the phasing in of a tax based on such a pricing structure.

BUSA has, in the meanwhile, called upon the cabinet for relevant ministers to engage further on a framework before implementing any such proposals on a carbon tax, especially given recent electricity price hikes and rising costs to the consumer. Similarly, the Manufacturing Circle said it “would welcome the opportunity for engagement”, with the caveat that a carbon tax, if not applied suitably, would “hurt manufacturing and jobs”.

National Treasury has argued previously that such a tax was necessary to create incentives for the public and industry to change behaviour and to encourage cleaner-energy technology and energy-efficiency amongst the public.

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