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South African companies scramble to comply with the new

South Africa’s heavy greenhouse gas emitters such as Sasol, ArcelorMittal, Exxaro, PPC and others are scrambling to register for carbon offset projects as the deadline looms for the payment of carbon tax in June. The Carbon Tax Act came into effect on 1 June 2019 and compels carbon emitters to pay for the pleasure of adding to the atmospheric load of human-caused greenhouse gas (GHG) emissions.  The first filing of the carbon tax returns for the 2019 reporting period was required by 31 July 2020, but was deferred by three months to 31 October 2020 as part of the Covid-19 relief mechanisms for taxpayers.  The tax sees companies taxed on direct emissions at a rate of R127 per CO² equivalent emitted, rising to R134 this year and escalating at 10% per annum over the next five years. An estimated R2.5-billion was raised in the 2020/21 tax year, according to research from Cova Advisory.

Finance is vital for the success of COP26

The United Kingdom as the incoming President of the 26th Conference of Parties (COP26) under the United Nations Framework Convention on Climate Change (UNFCCC), to be held in Glasgow, Scotland in November held a ministerial meeting on March 31 to discuss the issue of raising adequate funds for enabling developing countries to tackle climate change. The COP26 Presidency invited ministers from about 40 developing and developed countries, and also key institutions such as the World Bank and International Monetary Fund (IMF). Bangladesh was amongst the countries invited, and the foreign minister of Bangladesh spoke on behalf of both Bangladesh and the Climate Vulnerable Forum (CVF), which is currently chaired by Bangladesh. Although the speeches of individual speakers were not made public, the COP26 Presidency has released a summary of the discussions held with pledges of follow-up action from the UK as COP26 President going forward.

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