Carbon carrot and stick

2012-02-28 19:35

Cape Town - Government is going to pursue a carrot and stick approach on carbon tax, Environment Minister Edna Molewa said on Tuesday.

The tax, announced by Finance Minister Pravin Gordhan in his Budget last week, should be a "deterrent" to polluters, she told reporters in Cape Town.

"We must finalise this matter in such a manner that it is actually dealt with very sensitively," said Molewa, noting that details of the carbon tax were still being finalised.

"We believe that it actually is supposed to be much more of a deterrent to those who are polluters, rather than [a] broad carbon tax for everybody else who is... behaving very well," she said.

Her department was making input in this regard.

Molewa said the country's industries would each be allocated a carbon budget. Each sector would have to "do its best and spend to reduce emissions".

She said it was too early to say what impact the tax might have on electricity prices,

"It will not be correct for us now to say... it will impact on electricity prices because it may well come out to be something completely different that is a stick more than a carrot.

"Or maybe even carrying something of a carrot and a stick. From where we sit, it's much more of a deterrent."

Molewa conceded, however, that the energy sector in South Africa would have to pay more carbon tax "than any other" because it produced the most carbon emissions.

She said there would be "dialogue and support" for companies that found themselves under pressure to reduce their carbon emissions.

According to Gordhan's 2012 Budget proposals, a "modest carbon tax will begin to price carbon dioxide emissions".

The minister proposed the tax - at R120 per ton of carbon dioxide (equivalent) above certain suggested thresholds - take effect during the 2013/14 tax year, with annual increases of 10% until 2019/20.

The proposal includes "a basic tax-free threshold of 60%", with additional concessions for "process emissions and trade-exposed sectors".

Any reductions achieved would be measured against a base-year or industry benchmark.

Read more on:    eskom  |  pravin gordhan  |  edna molewa  |  carbon tax

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X

linking and moving

2015-04-22 07:36

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
10 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.