Governance & Policy

South Africa Carbon Tax Act

South Africa's carbon pricing law, taxing greenhouse gas emissions above sector thresholds with allowances that phase down over time.

Established · Editorial draft

Definition

South Africa's Carbon Tax Act, Act 15 of 2019 in force since June 2019, imposes a tax on the carbon dioxide equivalent of greenhouse gas emissions from fuel combustion, industrial processes and fugitive sources above set thresholds. A system of tax-free allowances covering most emissions in the initial phase is designed to tighten over time, alongside a carbon budget system and offset provisions.

Quick reference

At a glance

Subject
Governance & Policy
Editorial status
Editorial draft
Definition status
Established
Last updated
19 August 2026
Also known as
Carbon Tax Act 15 of 2019 · SA carbon tax

Overview

What it means

The continent's largest emitter put a statutory price on carbon, administered through the customs and excise system.

How it is used

Large emitters license facilities and file annual accounts with SARS; companies use approved offsets to reduce liability; policy debates track allowance phase-down.

Why it matters

It is the flagship carbon pricing instrument in Africa and a reference for middle-income countries designing carbon taxes.

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