SASOL, South Africa’s second-biggest greenhouse gas emitter, sees carbon taxes posing a “significant risk” to its business and warned current proposals could cause it to curtail operations and green initiatives.
The government sees the taxes as key to meeting its goal of producing net-zero emissions by 2050, but has faced intense lobbying from companies to make them less onerous.
Earlier this year, the first phase of the new regime — which will mainly entail setting up the required systems — was extended by three years until the end of 2025. It is envisioned that companies will get basic tax‐free emission allowances that will be reduced in the four years through 2030, the National Treasury announced in the February budget.
No clear guidance has been issued on how the allowances will be applied or how other offsets will work, according to Sasol CFO Hanre Rossouw. The company’s modeling shows it would become
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