South Africa Unveils Draft Rules on Carbon Emission Offsets
- Companies may be able to offset as much as 10% of emissions
- Most renewable energy projects excluded from offset program
This article is for subscribers only.
South Africa unveiled proposals Monday that would enable companies to offset as much as 10 percent of their carbon emissions by investing in projects that help conserve the environment and create jobs.
An offset program is contained in draft laws published in November last year that provide for a tax on emissions. The government said the measure is needed to meet a target of reducing the discharge of greenhouse gases by 34 percent below a scenario of “business as usual” in five years and by 42 percent by 2025. The duty, which will probably come into effect next year, will start at 120 rand ($8.06) per metric ton of carbon dioxide-equivalent emissions.