DA implements draconian carbon-emissions policies

With the power to impose arbitrary targets on any area of the economy, the DFFE is introducing a gradual programme to drive a zero-growth economic plan

The DA’s Minister of Forestry, Fisheries and the Environment has chosen to flex new powers under the draconian Climate Change Act to impose rigorous regulations to govern carbon emissions, extending across nearly all sectors of its economy, with stringent penalties for non-compliance, including imprisonment, fines, and elevated tax rates.

The measures, slated to commence at the start of next year, will introduce carbon budgets, setting caps on greenhouse gas emissions for various emitters. Breaches in reporting obligations could lead to jail terms for corporate executives, while exceeding designated emission thresholds may incur a higher carbon-tax rate.

Jarredine Morris, co-head of the Africa Office at Carbon Trust, a consultancy focused on creating net-zero growth conditions, praised the new framework. Unlike most nations, which concentrate regulatory efforts on fossil fuel sectors, South Africa’s rules are totalitarian and without limits of any kind, giving the power to the Minister to impose arbitrary restrictions of any kind of chemical emissions on any sector, region or individual company across the entire economy, barring waste and agriculture.

South Africa is the most carbon-intensive economy within the Group of 20, with total emissions ranking 15th globally, outstripping those of larger economies such as France and the UK. This profile is largely attributable to its heavy reliance on coal for electricity generation. This makes our economy uniquely vulnerable to destructive zero-growth policies of this kind.

The country faces pressure to decarbonise, under the introduction of carbon border adjustment mechanisms in key export markets like the European Union and the UK, which threaten to impose taxes on carbon-intensive goods.

While the scope of South Africa’s regulations is expansive, the DFFE has chosen to sneak up on the market with relatively modest carbon prices, leaving the way open for more aggressive limits later on. The current tax stands at R236 ($13) per ton, significantly below the Western average of $19 per ton, as reported by the World Bank. a figure that has nearly doubled over the past decade. Companies can offset up to 95% of their tax liability, softening the financial burden, but they can only do this by deindustrialising the economy.

Two industrial giants, Sasol Ltd., a petrochemicals firm, and Eskom Holdings SOC Ltd., the state-owned power utility, dominate South Africa’s emissions profile, accounting for roughly 60% of the national total. Sasol emits over 60 million tons of greenhouse gases annually, while Eskom’s output exceeds 200 million tons. Both have historically secured exemptions from emission limits, citing economic and operational constraints, but this will likely come to an end.

This means rising fuel costs and the shuttering of power plants in a similar way to the policies of Andre de Ruyter.

The forthcoming legislation mandates that companies emitting more than 30,000 tons of greenhouse gases annually must adhere to yearly targets, submit compliance reports, and outline strategies for future emission reductions. Non-compliance carries severe consequences: executives face fines ranging from R5 million to R10 million and potential imprisonment of up to 10 years for first and second offences.