SA’s new carbon tax has provoked a storm of criticism from environmental campaigners who say it is too weak, and from industry that predicts it will cause mass job losses.
Canada, France, Colombia and Sweden all have carbon taxes, with the World Bank saying a total of 46 countries now have such levies or similar schemes in place or scheduled for implementation. In SA, environmental groups such as the World Wildlife Fund have hailed the new tax as “a significant first step”, but say it is far too weak at its present level.
SA’s key mining sector, which is in long-term decline, fears the tax will further hasten its demise as one of the country’s main employers. Eskom, which produces more than 90% of SA’s electricity and more than a third of its greenhouse gas emissions, says the national plan to meet Paris Agreement targets include winding down its coal-powered stations and boosting low-carbon energy production.
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