Carbon Tax and the clay brick industry
Henk Sa, a Partner at EcoMetrix Africa, spoke at the CBA Gauteng regional meeting in August on the latest feedback regarding carbon tax - a fossil fuel input based tax - and how it will affect SA clay brick manufacturing. A talk about Carbon Tax is being set up at CBA meetings in other regions, where CBA members can put forward their pressing questions to an expert. CBA Members are also welcome to contact EcoMetrix directly.
- Implementation from the 1 January 2017 for the large emitting sectors in the country including the clay brick sector.
- Carbon Tax is expected to be set at 120 ZAR/tCO2e in the first year.
- The taxable volume of emissions is derived from the application of a set of discounts (referred to as tax free allowance in the Carbon Tax Bill) on the total emissions. The level of the different discounts is based on sector, company and production process characteristics and could accumulate to a reduction of the taxable volume of between 75% to 25%.
Since 2013 the CBA has been actively engaging with National Treasury regarding the design of the Carbon Tax legislation and the impact it will have on the clay brick production sector. Now with the implementation deadline approaching and the final design of the Carbon Tax becoming more clear, the CBA with the support of Swisscontact, has engaged EcoMetrix Africa to assist the sector in preparing for the start of the Carbon Tax.
Prior to the start of the Carbon Tax early next year EcoMetrix will assist the CBA in updating the analysis of the impact on the sector based on the latest design of the tax and share more detailed information on the Carbon Tax with the CBA members during the regional meetings.
As a spin-off of JP Morgan/EcoSecurities, EcoMetrix Africa is a leading South African greenhouse gas, energy management and financing consultancy assisting organisations in energy/carbon performance assessments, defining mitigation strategies and developing renewable energy and energy efficiency projects. Moreover, we assist organisations in determining how to respond to the changing regulatory landscape like the carbon tax and its offsets regulations, energy efficiency policies and incentives as well carbon budgets and greenhouse gas reporting regulations.
The company’s core competencies lie around the quantification and mitigation of GHG emissions, low-carbon energy technologies, assessment of energy performance and an in depth understanding of the South African energy and climate change policies. Moreover, we have a vast experience in carbon financing and other financial incentives that can improve low carbon energy business cases. Our team consists of climate change mitigation and energy experts with academic backgrounds in both economics and engineering.