http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.22Change: -0.23
R/$ = 11.16Change: -0.09
Au 1240.10 $/ozChange: -4.17
Pt 1243.50 $/ozChange: -18.70
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jun 02, 2011

No ‘green’ earmarking plan for carbon tax revenue

Back
National Treasury environmental and fuel taxes director Sharlin Hemraj discusses South Africa's proposed carbon tax policy. Camera Work: Nicholas Boyd. Editing: Darlene Creamer.
DURBAN|Johannesburg|Africa|Design|Education|Projects|Resources|Should South Africa|Africa|South Africa|Green House Gas Emissions|Transport|Environmental|Sharlin Hemraj
|Africa|Design|Education|Projects|Resources||Africa||Transport|Environmental|
durban|johannesburg|africa-company|design|education-company|projects|resources|should-south-africa|africa|south-africa|green-house-gas-emissions|transport-industry-term|environmental|sharlin-hemraj
© Reuse this



Should South Africa, which produced about 500-million tons of carbon dioxide equivalents (CO2e) yearly, move ahead with the implementation of a carbon tax, the revenue generated would not necessarily be set aside specifically for environmental projects, National Treasury environmental and fuel taxes director Sharlin Hemraj stressed on Thursday.

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 generally sought to eschew such earmarking to enable it to direct resources to a range of priorities, from boosting education to reducing the level of poverty in the country - money that 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 greenhouse-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 out that 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 levels 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
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Swedish Ambassador to South Africa Christian Meuwly will next week inaugurate the final roll-out of the new vertical shaft brick kiln (VSBK) at clay brick manufacturer Langkloof Bricks’ facility in Jeffrey’s Bay. The VSBK formed a part of economic, social and...
Hot on the heels of the launch of Rustenburg’s rapid transport system’s brand name and logo last week, a negotiation framework agreement (NFA) has been formally agreed to and signed by the Rustenburg Local Municipality (RLM) and taxi and bus operators affected by the...
The runway at the George Airport, in the Western Cape, has been rehabilitated to improve safety, in terms of run-off and storm water drainage, and the structural capacity of the pavement surface. The scope of work comprised the extension of Runway 11/29, the...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
Integrated energy and chemical company Sasol has partnered with Unisa Graduate School of Business Leadership (SBL) professor and founder and CEO of PanAvest Partnership Dr Douglas Boateng to publish a series of books on executive supply chain management aimed at...
MORNÉ DU PLESSIS Increased urgency and burgeoning awareness of the importance of these issues are beginning to change political risks and, thus, State responses to environmental concerns
The World Wide Fund for Nature’s (WWF’s) 2014 Living Planet Index (LPI) indicates that there has been a 52% decline in vertebrate species since 1970. The Index tracked the trends of 10 000 discrete populations of over 3000 vertebrate species between 1970 and 2010.
Rwanda has joined a number of East African countries seeking to import electricity from Ethiopia as its demand grows. After it became apparent several generation project it is implementing will not come on stream early enough, now plans to import 400 MW from Ethiopia...
Metrorail’s first new passenger train will arrive in November next year, says Passenger Rail Agency of South Africa (PRASA) CEO Lucky Montana. “Next year we will be able to put our hands around the infrastructure and equipment we have been talking about for so long.”
The Competition Commission has launched an investigation into what it says are “price fixing, market division and collusive tendering in the market for the manufacture and supply of automotive components to original equipment manufacturers” (OEMs, or vehicle...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks