South Africa implemented a Carbon Tax Compliance Market in June 2019 where emitters are taxed on their Scope 1 and 2 emissions. As the Tax Act is slowly implemented through 3 phases, allowances slowly fall away resulting in companies accumulating larger carbon tax liabilities should they not undertake emissions reductions. South Africa has already gazetted the Carbon Tax rates up to 2030, with annual increases averaging 17%.

Emitters with Carbon Tax Liabilities are allowed to offset between 5-10% of their liability through qualifying Carbon Credits. The South African Government set up COAS (Carbon Offset Administration System) to track ownership of Carbon Credits and allow companies to retire the credits to offset their tax liability. Use the Green Asset Exchange to get your verified COAS tax credits and support local sustainability and social development projects across South Africa.