Businesses handed a lifeline to reduce carbon emissions, now is the time to take action
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In the 2022 Budget Speech delivered by Finance Minister Enoch Godongwana, it was announced that the carbon tax rate will increase from R134 to R144, effective from 1 January 2022. However, the first phase of the carbon tax, with substantial allowances and electricity price neutrality, will be extended to 31 December 2025.
Commenting on the announcement, Dr Andrew Dickson, Executive: Engineering at CBI-electric: low voltage says that although this extension has given businesses more time to prepare, if they don’t take advantage of this, they will be hit with progressively larger tax rates from 2026 onwards. “If businesses don’t act now, there is also a chance that the country will not meet its commitments to lower its carbon emissions to mitigate the threat of climate change.”
The Finance Minister outlined that South Africa has committed to reduce its greenhouse gas emissions from 420 million tonnes to 350 million by 2030 to approach net-zero emissions by 2050, and the carbon tax is integral to lower emissions.
“Although a lot has been done to raise energy-use awareness up until now, all businesses, no matter the size, need to define how they can become more energy-efficient and reduce their carbon footprint to not only benefit their bottom line in the future, but the country’s health as a whole.”
To assist businesses in getting a start, Dr Dickson says that companies should conduct an energy audit. “Ascertaining how much energy a business uses is the first step in calculating potential savings and drawing up a green framework for the company. As sunshine is an abundant resource in Africa, affording the opportunity for renewable energy supply, businesses that can do so should invest in solar power.”
He continues, “When it comes to energy efficiency, businesses can also monitor, control and schedule electrical appliances with smart devices. Controlled directly from a smartphone and/or tablet, smart devices such as smart plugs, controllers and isolators allow companies to schedule lights, aircons and items that are plugged in and not in use to be turned off. When it comes to temperature management, aircons and heaters can be scheduled to turn on depending on weather conditions. Lights can also be scheduled to turn on at the start and off at the end of every day.”
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