South Africa's Carbon Tax Set To Go Into Effect Next Week

"A carbon tax in South Africa will go into effect on June 1. President Cyril Ramaphosa signed the measure into law on Sunday, making South Africa one of about 40 countries worldwide to adopt a carbon-pricing program."

"Proponents of the carbon tax say the true cost of carbon emissions, a key contributor to climate change, is not reflected in the price of fossil fuels. Many economists have argued that taxing carbon would result in a shift toward cleaner sources of energy."

"The tax will be introduced in phases: The first phase will run until December 2022 and will tax carbon at a rate of about $8.34 per ton of CO2 equivalent. But according to a statement from the National Treasury, tax breaks will significantly reduce the effective rate of the tax."

"The treasury will assess the impact of the tax and the country's progress toward emissions goals before the second phase of the policy, which will start in 2023 and end in 2030."

"The policy has been in the works for the better part of a decade, Reuters reported."