+------------------------------------------------------------------------------+
South Africa to Release Discussion Paper on CO2 Tax by Year End
2010-09-17 12:56:29.297 GMT
By Lauren van der Westhuizen
Sept. 17 (Bloomberg) -- South Africa, the continent's
largest emitter, plans to release a paper for discussing a new
tax on carbon dioxide before the end of this year.
"This document will elaborate on the policy and
administrative options for this tax," treasury spokeswoman
Kershia Singh, said today in an interview from Pretoria.
South Africa generates 90 percent of its electricity from
coal and ranks among the world's top 20 greenhouse-gas emitters,
according to United Nations statistic. The country, accounting
for 42 percent for Africa's carbon emissions, is considering a
CO2 tax in the range of 75 rand to 200 rand (11 to 28 U.S.
cents) a metric ton of CO2 emitted, the treasury's Economic Tax
Analysis unit said in May at a climate conference Johannesburg.
The period for public comment is undecided and depends on
the amount of interest, Singh said. A draft policy paper would
be prepared after the public discussion for consideration by the
cabinet, she said. "If this tax is implemented, the timescale
that is likely is 2012 or 2013," she said.
The treasury has said a carbon tax is a more appropriate
way to price carbon than emissions trading, which is "far more
complex." Europe's trading system, started in 2005, caps
emissions for more than 12,000 factories and power stations,
allowing them to buy and sell credits and use UN offsets known
as Certified Emission Reductions in place of EU allowances.
South Africa introduced a carbon tax on Sept. 1 for new
vehicles that emit more than 120 grams of carbon dioxide per
kilometre. The government wants to extend this tax to include
older cars as well as a levy on fuel, Finance Minister Pravin
Gordhan said in an August speech to the National Assembly.
For Related News and Information:
Today's top environment news: GREEN <GO>
Renewable-energy markets home page: RENE <GO>
Sustainability, environmental indexes: SEI <GO>
--Editors: Mike Anderson, Todd White.
To contact the reporter on this story:
Lauren van der Westhuizen at +27-21-441-7602 or at
lvanderwesth@bloomberg.net.
To contact the editor responsible for this story:
Reed Landberg at +44-20-7330-7862 or
landberg@bloomberg.net.
