The Carbon Tax Act is one of South Africa’s commitments as part of the Paris Agreement. As the Act came into effect on 1 June, so too did a levy on the fuel price: 7c/litre for petrol and 8c/litre for diesel. Businesses identified in the first phase are now charged R120 per ton of carbon dioxide released into the atmosphere. While business and climate change advocates are at odds about the act, whether it is too late, too rigid or not rigid enough, there is some relief on the horizon for millions of South Africans.

Underprivileged people are most impacted by climate change, and the government has stressed that alleviating poverty and guiding the economy to a sustainable path is uppermost on its agenda. Businesses will want to minimise their tax burden by reducing their reliance on fossil fuels and moving toward sustainable products and sources of energy.