South Africa will seek jail time, fines and higher taxes for breaches of proposed rules to govern carbon emissions that will apply to almost all sectors of the economy.<\/p>\n\n\n\n
The proposed regulations, due to take effect at the beginning of next year, will see the setting of so-called carbon budgets for emitters of climate-warning greenhouse gases. <\/p>\n\n\n\n
A failure to meet reporting requirements could see executives imprisoned, while exceeding emission limits may trigger a higher carbon-tax rate.<\/p>\n\n\n\n
\u201cWe are the only ones that have this price across our whole economy\u201d with the exception of waste and agriculture, said Jarredine Morris, co-head of the Africa Office of Carbon Trust, a carbon emissions consultancy. <\/p>\n\n\n\n
It will mean \u201cwe really have a way to have industry to start to do things rather than kick the can down the road,\u201d she said.\u00a0<\/p>\n\n\n\n
South Africa, the most carbon-intensive economy among the Group of 20 nations, is intensifying efforts to cut its dependence on coal for power generation. <\/p>\n\n\n\n
It\u2019s also seeking to reduce its overall emissions, which rank 15th globally, exceeding those of much larger economies, including France and the UK.\u00a0<\/p>\n\n\n\n
The steps come as South Africa faces the prospect of having taxes levied on exports that rely on carbon-heavy industrial processes. <\/p>\n\n\n\n
Major markets such as the European Union and the UK are implementing so-called carbon border adjustment mechanisms.\u00a0<\/p>\n\n\n\n
While the proposals, which the environment department has opened for public comment, are broader than those of other nations that mainly target fossil fuels, its carbon price is much lower. <\/p>\n\n\n\n
Morris expects the initial carbon budgets to be \u201crealistic\u201d and similar to current emission levels.<\/p>\n\n\n\n
The average price levied globally on emissions of carbon dioxide or its equivalent has almost doubled over the last decade to $19 a ton, according to the World Bank. <\/p>\n\n\n\n
South Africa\u2019s current carbon tax is R236 ($13) a ton, with companies allowed to use offsets to avoid as much as 95% of the tax burden. Globally carbon taxes earned more than $100 billion last year. \u00a0<\/p>\n\n\n\n
Two companies, petrochemicals maker Sasol Ltd. and state power utility Eskom Holdings SOC Ltd., account for about 60% of the country\u2019s emissions. <\/p>\n\n\n\n
Sasol produces more than 60 million tons of greenhouse gases annually and Eskom around 200 million tons. <\/p>\n\n\n\n
Both companies have won exemptions from complying with current emission limits, complaining about the cost and economic impact of doing so.<\/p>\n\n\n\n
Under the proposed legislation, all companies that emit more than 30,000 tons of greenhouse gases must submit to annual targets and report on compliance and future plans to reduce emissions. <\/p>\n\n\n\n
Executives can face fines of between R5 million and R10 million, and imprisonment of as long as 10 years for first and second offenses.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
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