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Writer's pictureZadok Olinga

Avoiding The 10 MW Cliff Edge - Carbon Tax Mitigation

Updated: Jun 15, 2019


Carbon tax is finally law in South Africa. The key eligibility criteria for a company to be liable to pay carbon tax is that it must have a 10 MW installed thermal capacity or more. This can be seen as the metaphorical cliff edge between having to pay carbon tax and not. So the question one asks is "if i'm over the threshold, how do I get below it and if i'm close to it, how do I avoid crossing the threshold". To answer this question, one must look at reducing their installed thermal capacity to reduce their combustion emissions.

10 MW can be seen as the metaphorical cliff edge between having to pay carbon tax and not

Because the regulations stipulate "installed thermal capacity" approaches such energy efficiency, demand reduction or supply diversification must be approached ingeniously if a company is to maintain its existing production capacity.


I have particular thoughts on how to solve this particular conundrum. I'd happy to hear your thoughts on how companies can approach it. For more information on carbon tax in South Africa, how it will affect your company and how to mitigate it, feel free to contact me.


Zadok Olinga, Cell: +27813129821, Email: zadok@oelinga.com


You can find the author on LinkedIn at https://www.linkedin.com/in/zadokolinga/

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