Who is Liable?

Fuel combustion

Which deals with emissions released from fuel combustion activities in specific sectors. Typically energy of 10MW across all facilities.

Fugitive emissions

From fuels, released from the extraction, production, processing and distribution of fossil fuels.

Process emissions

From the consumption of carbonates, synthetic gasses and the use of fuels as feed stocks or as carbon reductants.

Waste emissions

Released from the de- composition of organic material in landfills or wastewater handling facilities and waste incineration.

Exempted sectors:

Agriculture, forestry and other land use except for stationary combustion. As well as road transport emissions are excluded except the transportation of CO2.


Annual payment expected to be done during July each year and will be administered through the Customs and Excise Act.


Draft SARS rules provides for registration and licensing of emissions activities based on IPCC codes

How does it affect SA companies?

Carbon tax base of

R 127

(increasing annually) per tonne of carbon dioxide equivalent (tCO2 e) emissions

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Phase one of carbon tax allows companies to benefit from the following allowances:

 Basic allowances of 60% until 2023

An additional tax-free allowance of 10% for process emissions

An additional tax-free allowance of 10% for fugitive emissions

A maximum tax-free allowance of 5% for above average performance.

A 5% tax-free allowance for companies with a Carbon Budget

A variable tax-free allowance for trade-exposed sectors (up to a maximum of 10% )

A carbon offset allowance of either 5% or 10%

The total tax-free allowances during the first phase can be as high as 95% .

NRG can assist

By addressing the real-world financing concerns of a project, our approach can help make a renewable proposal a renewable solution. Here’s how:

Determine if your company has to report carbon tax.
Measure and benchmark your carbon footprint using the appropriate methodologies as outlined in the technical guidelines.
Apply innovative carbon reduction strategies to reduce your carbon footprint with our group of experts.
Help your company benefit from the available allowances.
Assist in carbon reporting.
Make the carbon tax bill work for your company to create a greener future for South Africa.

Do you want to reduce your energy expenses without upfront costs?

NrG’s Zero Capex Solutions allow our clients to pursue their renewable energy projects without risk, and we take care of the price tag.