Carbon taxes are an important way to change the behavior of polluting companies, reduce greenhouse gas emissions to mitigate climate change, and use tax revenues to benefit society as a whole. This is according to researchers at the University of Cape Town (UCT).
South African Electricity and Energy Minister, Kgosiensho Ramokgopa, is proposing to suspend After experiencing pressure from the country's carbon tax fossil fuel lobby.
The carbon tax is “based on”the polluter paysunder the principle carbon tax actWhich increases the cost of fossil fuel-intensive activities. When the law was passed in 2019, carbon emissions were taxed at a rate of R120 (US$7.50) per tonne of carbon dioxide. But some companies achieved great protection cut just below the amount R6-R48 (US$0.37-2.50) per tonne.
tax is payable for a increase As soon as it enters this year second phase. Annual tax revenue is collected estimated to be R1.5 billion (US$93 million), which is the same amount spent on Early Childhood Grant In 2023.
South Africa's Carbon Tax Act was passed after more than a decade of negotiations competitive alliance Government, advocacy groups and businesses. This tax is unpopular among major emitters, who argue that it would harm the economy and create job losses emissions-intensive areas.
yet about 20% of global emissions Are subject to carbon prices. Carbon taxes are an important way to change the behavior of polluting companies, reduce greenhouse gas emissions to mitigate climate change, and use tax revenues to benefit society as a whole.
The South African government has consistently identified a carbon tax as a central national policy to accomplish this Nationally Determined Contribution Which set the country's emission reduction targets. South Africa has confirmed this paris agreementWhich requires countries to further reduce emissions and revise their national climate plans every five years. a higher carbon tax rate reduces both costs Clean energy transitions and inequality.
As members of South Africa's academic community and researchers in climate science, governance and law, we argue that a carbon tax must remain a matter of justice.
Removing the tax will benefit some large emitters in the short term. But this will be at the expense of everyone else living in South Africa, now and in the future.
Suspending the carbon tax would be illegal and undermine human rights
Because the Carbon Tax Act is legislation enacted by Parliament, ministers in the executive branch of government are attempting to “suspend” its implementation, which would weaken it. rule of law. The rule of law protects democracy because Parliament represents the people.
The South African Parliament also passed Climate Change Act Legislation will be enacted in 2024 to ensure that the country reduces emissions and contributes appropriately to the global effort to reduce global warming.
The carbon tax aligns with the Climate Change Act and multiple climate policy objectives that promote, protect, and accomplish:
“The right to an environment which is not harmful to health and well-being”
All South Africans, by country Constitution.
Carbon tax U-turn will damage South Africa's credibility in climate diplomacy
The South African Government is a progressive leader in global climate change negotiations, aiming to contribute its fair share to reducing greenhouse gas emissions globally.
South Africa's G20 presidency Emphasis on climate action Under the core principles of equality, stability and solidarity in an increasingly divided world.
Suspending the carbon tax would undermine South Africa's credibility in climate diplomacy and its ability to meet its global obligations. International climate financers have already pledged money to South Africa to finance the country's transition from coal-fired power to clean energy. Just Energy Transition Partnership. It sets out how clean energy, industrial development and transport will be introduced to achieve the goals stated in the Nationally Determined Contribution.
Removing the carbon tax will not exempt polluting companies from paying tax on their emissions. Higher emitters would pay the cost on goods exported across foreign borders. Companies from countries without a carbon tax pay under international carbon tax schemes such as the European Union Carbon Limit Adjustment MechanismWhich attempts to encourage clean production in states outside the European Union.
Suspending the carbon tax would reduce the amount of tax revenue collected in South Africa and weaken industrial competitiveness. This will also weaken the country's position in the global trading system.
Competitiveness, inclusive economic growth and investment climate
Carbon tax is one of the most effective ways to reduce greenhouse gas emissions. taxes motivate companies shift For cleaner production and consumption systems.
well designed taxes Foster innovation In products, services, processes and business models. this in turn attracts investment in the economy, which is necessary for the long term employment generation.
Can also do carbon tax reduce inequality. Big polluting companies pay more in carbon taxes, and the government can use this money to provide services to disadvantaged communities.
Some opponents of a carbon tax argue that it would increase energy prices, as emitters would pass the tax on to their consumers. However, taxes raise revenue on which the government can spend increasing access to clean energy and reducing electricity prices in low-income areas.
Taxing emissions now means paying less to adapt to climate change later
Reducing emissions is the primary way to reduce the effects of climate change. South African government own research Showed that the negative impacts of climate change on water, rain-fed agriculture and infrastructure alone would reduce GDP by 3.6% compared to a world without climate change.
These reductions will continue to increase over time. In the next 35 years, according to an estimate R259 billion (or US$16.1 billion) would be lost due to inaction on global warming if there were no carbon tax.
These losses are significant. The social, economic and natural impacts of climate change increase exponentially with the amount of global warming as well as the costs of adaptation.
We call on the government to continue consistent implementation of the Carbon Tax Act constitutional rights: :
“To protect the environment for the benefit of present and future generations, through appropriate legislative and other measures that prevent pollution”.
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