In response to South Africa ranking as one of the top 20 contributors of greenhouse gas emissions in the world, the government voluntarily announced during the 2009
United Nations Climate Change Conference in Copenhagen and confirmed in Paris
in 2015 that it would act to significantly reduce domestic greenhouse gas emissions.1
Government has thus proposed a carbon tax policy to encourage behavioural change
towards cleaner low-carbon technologies. As a complementary measure,
government has introduced environmental-related tax incentives to address concerns
related to global warming and energy security such as section 12K (exemption of
certified emission reductions).