Response to Draft Regulations: Carbon Offsets

Climate Neutral Group welcomes the opportunity to provide comments on the National Treasury’s June 2016 Draft Regulations for Carbon Offsets. We appreciate the initiative taken by the National Treasury to put a price on carbon as a key policy measure in reducing South Africa’s emissions, establishing a low-carbon economy, and addressing the challenges of climate change.

Further, we are encouraged by South Africa’s consideration for an offset mechanism to be developed as part of its climate policy. Offsetting is a valued complement to supporting emission reductions at most efficient cost and can deliver additional socio-economic and environmental benefits.

In designing its emissions reductions programme, the South African government has taken the distinctive approach by blending the simplicity and revenue of a tax, and the flexibility and cost efficiency of a cap-and-trade system. The resulting ‘tax and trade’ scheme is therefore uniquely South African. In addition, the focus on domestic emission reduction projects will allow industries to benefit from carbon tax savings while at the same time contributing to sustainable development within South Africa.


Climate Neutral Group (CNG) aims to shape and promote the low-carbon agenda. We were established in 2001 in the Netherlands by the Doen Foundation and Triodos Bank. Since then we have grown to market leader in the Benelux thanks to our knowledge and experience in carbon management. In 2012 we expanded operations into South Africa – a country with one of the largest carbon footprints in the world and increasing regulatory measures (such as the proposed carbon tax). Our expertise and services are well matched with the need for professional services that can ensure compliance and accelerate businesses’ transition towards sustainability.



Nishanthi Lambrichs
| Carbon Advisor

Nishanthi assists South African businesses and organisations in measuring, reducing and offsetting the carbon emissions of their business flights.