Download Our brochure

What exactly is carbon tax?

The main purpose of the carbon tax is to price carbon emissions into business activities through regulation, forcing organisations to be accountable for their environmental footprint. Implementing the carbon tax will ultimately result in the reduction of carbon emissions in the atmosphere and mitigate the adverse effects of climate change.

Carbon Tax Legislation

SARS – Carbon Tax Explanation

National Treasury introduced the carbon tax  with the objective of South Africa reducing greenhouse gas emissions by 2025 against a business as usual curve. A taxpayer is liable to pay carbon tax where it conducts any activities as set out in Schedule 2 of the Carbon Tax Act and emits GHG emissions above the listed thresholds. There are also tax allowances that range between 60% and are capped at a maximum of 95%. A percentage of emissions will be tax-exempt until 2022 to allow for a smooth transition for business. The national electricity utility is exempt until 1 January 2023 after which it will pass its carbon tax liability through to its consumers in the form of tariff increases.

DID YOU KNOW – Mpumalanga has the 2^nd worst air quality in the world? 

gREENHOUSE GAS COMPLIANCE

The purpose of reporting Greenhouse gas emissions to the Department of Environment, Forestry and Fisheries (DEFF) is to maintain a national inventory of emissions for reporting to the United Nations Framework Convention on Climate Change (UNFCCC) and informing future policies. Registration on the South African Greenhouse Gas Emissions Reporting System (SAGERS) began in 2018 and organisations are required by law to be complete their mandatory emissions reporting on the system by 31 March every year. The Department of Environment, Forestry and Fisheries (DEFF) is still encouraging impacted organisations to register and report their emissions. Complying with these mandatory reporting requirements is too important to leave to chance, so let our experts ensure your business meets all obligations and work with you to identify extra savings and benefits. The legislation is in full enforcement and DEFF will not hesitate to make strong example of non-compliant organisations with full penalty of R5m or 5 years imprisonment.

Here is the link the relevant legislation – 

GHG Legislation

At the last World Economic Forum (WEF), climate change was highlighted in the top 5 risks likely to impact our environment, societies and economies. With the growing regulatory focus on climate change globally, LTM will ensure your organisation maintains its credibility and legitimacy. We can assist you in demonstrating regulatory compliance and change as a good corporate citizen – ensuring that your organization benefits all round from sustainable business value.

LTM’s Compliance team have a wealth of experience in greenhouse gas analysis and reporting. We follow a structured process to carry out greenhouse gas analysis for all our client’s operations, adhering to the legislation guidelines and the Greenhouse Gas Protocol. We gather and analyse your organisations carbon emissions and report it on the Department of Environment, Forestry and Fisheries (DEFF) system. We will also provide guidance on the measurement and reporting of greenhouse gas emissions as we have an inhouse M&V (measurements and verifications) team. In fact, we were the first approved private independent M&V team in Eskom. We ensure our client’s greenhouse gas compliance reporting to the Department of Environment, Forestry and Fisheries (DEFF) mitigates any current and future reputational risks. Our analysis also includes information on incentives (such as tax incentives and carbon credits) to leverage off rather than just mere compliance reporting. As part of the service we will also identify opportunities in which you can reduce your utility costs and improve efficiencies – helping you to maximise on those financial and environmental savings whilst improving your reputation as a responsible organization.

Through the development of our proprietary eSUMS software, LTM has reduced the amount of time, risk and impact of human intervention in capturing and calculating the carbon emissions, ensuring an accurate report for the regulator and external reporting. LTM has also developed a good relationship with DEFF on behalf of other blue-chip clients and will be able to assist with a swift submission once all the data is obtained, thereby alleviating any potential reputational risk to the organisation.