South Africa launches Carbon Offset Administration System

South Africa launches Carbon Offset Administration System

The implementation of the South African Carbon Tax has finally reached completion with the launch of the Carbon Offset Administration System (COAS). This follows the gazetting of the regulations on trade exposure and performance benchmarks one month ago and the announcement by SARS three days ago that restrictions on applications for Carbon Tax registration/licensing have been lifted.

What this means is that everything is in place for South Africa’s carbon-tax payers to prepare their carbon tax environmental levy account, due 31 October 2019. More importantly, the administrative systems are now operational meaning that all applicable allowances can be claimed, including those for trade exposure and carbon intensity performance as well as for allowances resulting from the investment in carbon offsets as per section 13 of the Carbon Tax Act.

The Carbon Offset Administration System will be managed by the Department of Mineral Resources and Energy (DMRE) and will allow project developers to submit project applications and emitters to surrender offsets against their carbon tax obligations.

Credits from South African projects certified under the CDM, Gold Standard, and Verified Carbon Standard (VCS) will be allowed providing they meet the criteria outlined under the gazetted Carbon Offset Regulations.

If you are a taxpayer as per the Carbon Tax Act No 15 of 1 June 2019, now is the time to reduce the financial implications of the tax by purchasing carbon offsets. Climate Neutral Group has a wide portfolio of eligible credits that can be used under South Africa’s Carbon Tax.

Emitters and project owners are invited to register and set up their COAS account:

For more information, please find the Media statement from the Department of Mineral Resources and Energy below: