Energy efficiency incentive can help firms in all sectors cut carbon tax
Companies in mining & quarrying and manufacturing are the biggest adopters of the incentive
The painful stick of the carbon tax, introduced in June 2019, is beginning to bite, with the next carbon tax payment due in July 2021. Initially, the financial burden on firms has not been back-breaking as it is being phased in, though many companies have been daunted by the additional, mandatory administrative and monitoring requirements.
However, while this carbon-reinforced tax stick applies to larger carbon emitters, there have been mixed responses to an accompanying carrot, the energy efficiency tax incentive known as S12L. A new analysis by the SA National Energy Development Institute (Sanedi) shows that R14.1bn in tax savings was secured through the incentive from its launch in November 2013 to the end of 2019, enabling a total of 18.7TWh of energy savings...
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