By Thebe Mabanga
The National Treasury has announced new measures to further develop South Africa’s carbon credit market, as outlined in this year’s delayed Budget.
This is through publication of a consultation paper, titled Developing the South African Carbon Credit Market.
“The consultation paper’s recommendations seek to modernise carbon credit infrastructure, clarify legal and financial regulations, and stimulate investment in South Africa’s low carbon projects,” the Treasury said in a statement.
Carbon credits are tradable permits that allow countries and companies to offset their greenhouse gas emissions by funding mitigating measures such as renewable energy projects, or planting forests that act as carbon storage facilities.
Two of the key aims of the discussion paper is to develop carbon credits as unlisted securities that can be traded over the counter and to supporting South Africa’s Nationally Determined Contribution (NDC) under the Paris Agreement by using “a well-regulated carbon market to meet South Africa’s emission reduction commitments…and secure international recognition for high-integrity credits.”
South Africa is recognised as a
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