DRAFT CARBON OFFSET REGULATIONS
Title: Draft Carbon Offset Regulations
Effective date: Not yet specified
Proposed regulations in terms of clause 20(b) of the Draft Carbon Tax Bill, 2015, have been published for comment. These regulations are the next step in the process of bringing the carbon tax into operation by early 2017.
These regulations propose procedures for claiming the allowance envisaged; and using offsets to reduce carbon tax liability. In terms of these regulations, an offset must be allowed to a taxpayer in respect of any certified emission reduction derived from the furtherance of an approved project that is carried on, on or after 1 January 2017 if that project is wholly undertaken in the Republic; in respect of an activity that is not subject to the carbon tax. An offset, in this context, means “measurable avoidance, reduction or sequestration of carbon dioxide equivalent (CO2e) emissions in respect of an approved project (including a Clean Development Mechanism or Verified Carbon Standard project, a gold standard project or a project that complies with another approved standard.” Offsets may only be used for periods as specified in the regulations. Specific limitations on allowance have also been proposed.
Once in force, these Regulations will apply to energy efficiency projects not already benefiting from the existing tax incentive, public transport and municipal waste projects, and projects focusing on agriculture, forestry and related land-use activities. they would, however, not apply to technologies from activities in the carbon tax liability net, or to renewable energy projects where these have been incentivised by way of other programmes.
The administration of these Regulations will be the responsibility of the Designated National Authority as contemplated in the Regulations for the establishment of a designated national authority for the Clean Development Mechanism (GN R721 in GG 27788 of 22 July 2005).
Comments on these draft regulations must be submitted by 29 July 2016. An explanatory note has also been issued pertaining to these regulations.
See more at: http://legalbrief.co.za/diary/legalbrief-environmental/policy-watch/legislation-draft-carbon-offset-regulations-published/#redirect.
“So what” for my operation?
If your operation is eligible for carbon offsets, compliance to these regulations must be ensured, once such has been finalised.