The National Treasury, which aims to conclude its carbon-tax policy ahead of the 2012 Budget, currently favoured a tax on carbon emissions, and its discussion document proposed R75/t CO2e, increasing to around R200/t CO2e over time.
“The imposition of a tax is that money should be spent in a certain way and one of the common misconceptions is that revenue will be used to finance specific environmental activities with the implementation of a tax,” she explained at the Transport Forum, held in Johannesburg.
National Treasury’s generally sought to eschew such earmarking to enable it to direct resources to a range of priorities, from boosting education or reducing the level of poverty in the country – money would be spent accordingly to close the gap on challenges that strained economic growth.
However, Hemraj explained that revenue from the tax could also fund environmental projects that focused on mitigating green house gas emissions, provided there were solid business proposals.
“In the discussion paper, it is indicated that National Treasury does not support strict earmarking. But, we are looking into directing funds through different line departments and then considering those projects on merit. Full earmarking of revenues is not in line with Treasury policy, but it is recognised that funding can be channelled for specific on budget programmes that contribute to reducing emissions,” she explained.
Hemraj also pointed to South Africa would not necessarily present a complete low-carbon strategy at the 17th Conference of the Parties of the United Nations Framework Convention on Climate Change, or COP17, to be held in Durban, in November. But the country would flag the efforts it was making in this area.
For South Africa to shift to a pure emission tax, a long-term intervention would require emission level from different processes to be verified. Legislation making reporting mandatory would be required and would need to be developed by the Department of Environmental Affairs. Enforcement capacity would also have to be created.
National Treasury was behind with its schedule for finalising the design and modelling of the carbon tax options, which should be completed by July.
Edited by: Mariaan Webb
Source: http://www.engineeringnews.co.za/article/no-green-earmarking-plan-for-carbon-tax-revenue-2011-06-02
Peugeot’s green machine
May 22, 2013
SA’s green jobs: how are they growing?
May 21, 2013
Carbon Emission Tax and Investment Strategy
May 20, 2013
ABB Signs Deal for South Africa PV Project
May 14, 2013
400ppm history lesson for sceptic amateurs
May 14, 2013
Rand Weakens on Renewable Energy Hedges
May 10, 2013
SA ranks 13th on green tax index
May 10, 2013
SA carbon tax baffles critics who look to EU
May 08, 2013
Share
About Author
(2) Readers Comments
Leave a Reply
Robert Vincin
The Government needs to be better advised leading into COP17 that the mass CO2 build up is basically a result of 300 years of Europeans clearing land and forestry never replacing same. The direct opportunity exists for South Africa to set models or view my work in PRC and Mongolia of C4 vegetation sequestering CO2 to make soil trace elements attracting flora fauna and microbic life.
Well planned and managed under UNFCCC Kyoto rules a multitude of flow on benefits addressing unemployment and poverty.
As a lead nation in G77 Africa can assist NIT and developing nations demonstrate to USA et al that the support of developing nations to sequester CO2 will also address the reparation of land stripping over past 300years by Europeans
Robert Vincin see Google
admin
Very valid comment Robert – thank you. I am still trying to find out if the public can attend COP 17 – on the surface it looks like a closed invitation list. The Green Business Guide.