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flag South Africa’s 2026 carbon tax reform is critical to cut emissions, avoid costly infrastructure lock-in, and meet global climate commitments.

flag South Africa’s carbon tax, set to enter Phase 2 in 2026, faces growing calls to be suspended or scrapped, but experts warn this would harm climate progress and economic stability. flag The current design, which offsets Eskom’s carbon liability with a renewable energy premium, fails to drive emissions cuts in the power sector, maintaining coal’s dominance. flag Without reform—such as removing the offset and integrating full carbon pricing into electricity market bids—the tax risks locking in carbon-intensive infrastructure, increasing long-term costs, and exposing exports to global carbon tariffs like the EU’s CBAM. flag Experts urge refining the tax to boost clean investment, support equity, and maintain international credibility, stressing that scrapping it would undermine climate goals, energy transition, and fiscal health.

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