South African business groups seek slower carbon tax rollout

South African business organisations have asked the government to slow its plans to boost carbon taxes, arguing the planned charges are unaffordable. The groups, which represent the biggest energy and mining companies in the world’s 13th-biggest emitter of climate-warming gases, have asked the government to keep carbon tax increases to two percentage points above inflation every year until at least 2030.

“The South African economy cannot accommodate the steepness of the carbon tax rate increase in the proposed short period of time,” the groups said in a statement released on Tuesday. “This is compounded by the slow recovery from the devastating impacts of Covid-19 and an economic downturn, which has resulted in the closure of businesses, job losses and the exacerbation of poverty.

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Business groups unite in calling for slower rollout of carbon taxGroups say they are committed to reducing emissions but cannot afford the proposed tax rates and raise the capital to grow or invest in new low-carbon products and services
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