Structuring approaches to pricing carbon in energy- and trade-intensive sectors in South Africa

摘要

How might energy-intensive (El) sectors and those that are also trade-intensive (EITI) be included in the use of economic instruments for mitigation in South Africa? Carbon tax or emissions trading are being considered among the economic instruments that could be implemented in emerging South African climate policy to achieve a 34% GHG reduction below business-as-usual by 2020. Energy-intensive and trade-intensive sectors are identified and compared. Reviewing international experience, policy options are explored for application in the SA context. The rate of a carbon tax could be linked to energy or carbon content, with lower rates being subject to an agreement with government on mitigation. If emissions trading were chosen, initial allowances should be auctioned. If permits were allocated administratively to El or EITI sectors, this should be transitional and should allow for an appeals procedure. Recycling of revenue would be desirable under either a tax or auctioning scheme, promoting efficiency, further mitigation and diversification in EITI sectors. Policy favouring El industry might need to be revised in favour of incentives for climate-friendly programmes.