002 - Carbon Tax Act

Question 1

Carbon Tax Act van (datum?)

Answer 1

Wet no 15 van 2019

Question 2

What does anthropogenic mean?

Answer 2

Anthropogenic hazards are hazards caused by Human action or inaction

Question 3

What does Carbon Dioxide equivalent mean?

Answer 3

CO2e means the metric tonnes of CO2 emissions with the same global warming potential as one metric ton of another greenhouse gas.

MAW - CO2e word gebruik om basies al die ander te skaleer, en so ook vergelykbaar maak met mekaar

Question 4

What is the emission factor? (Daar is ook twee aanames met die berekening)

Answer 4

Means the average emission rate of a greenhouse gas for a given source, relative to the activity data of a source stream assuming complete oxidation for combustion and complete conversion for all other chemical reactions

Question 5

What is the emissions intensity?

Answer 5

Means an indicator of the result of the measurement of the quantity of greenhouse gas emissions in relation to an activity

Question 6

What is fugitive emissions?

Answer 6

Basically any emissions that were not intentional - typically leaks from process equipment, arising from abnormal conditions etc.

Question 7

What is a greenhouse gas according to the act?

Answer 7

Greenhouse gasses are gaseous constituents of the atmophere, both natural and anthropohenic, that ABSORB and RE-EMIT infrared radiation, and includes CO2, CH4, N2O, hydrofluorocarbons (HFC’s), perfluorocarbons (PFC’s) and sulphur hexafluoride (SF6)

Question 8

What are PFC’s?

Answer 8

PFC stands for perfluorocarbons - basically organic compounds consisiting only of carbons and fluorine. They are man made substances and typically inert, colourless, ouderless etc.

Question 9

What is the IPCC? En wat is hulle doel?

Answer 9

The IPCC means “Intergovermental Panel on Climate Change”. It was established to provide internationally co-ordinated scientific assessments of the magnitude, timing and potential environmental and socia-economic impact assessments as a result of climate change

Question 10

Who established the IPCC?

Answer 10

The IPCC was established by UNEP (United Nations Environment Programme) and the WMO (World Meteorological Organization). It was endorsed by the UN in 1988

Question 11

What is the IPCC code?

Answer 11

It means the source code in respect of an activity resulting in the emission of a greenhouse gas as stipulated in the “Guidelines for National Greenhouse Gas Inventories”

Question 12

Who may be carbon taxed?

Answer 12

There are certain requirements before a person can be taxed:

1. ) The actions of said person/company must result in greenhouse gasses being released
2. ) It needs to exceed a threshold value for that specific activity.

A list of activities and threshold values to be found in the act

Question 13

Principles on which tax may be levied as it relates to greenhouse gasses?

Answer 13

1. Tax to be applied to the total amount of gas emissions - this can be from burning fuel, emissions from industrial gasses and fugitive emissions
2. It is calculated on a per ton CO2e basis
3. Reporting methodology as approved by thee Department of Environmental Affairs

Question 14

In terms of calculating the total amount of CO2e for calculating the tax, what is actually happening in the Act? (In terms of the methodology, and also what contributes to the total)

Answer 14

According to the Act, the Department of Environmental Afaairs basically witholds the right to change the methodology. Only when they do not provide a methodology, can the methodology be used as outlined in the act.
In the ACT there are three subsections to determine the total CO2e units by considering fuel burnt, planned emissions and fugitive emissions separately

Question 15

For fuel consumption, certain exceptions were made, where tax wil not be applicable? (Wees versigtig met die aviation?)

Answer 15

TRUE - this is for fuel consumed during maritime transport, as well as international aviation

Question 16

What is the base tax price per tone of CO2e released?

How is this value adjusted each year?

Answer 16

R120

Every year before 31 Dec 2022, it increases with CPI + 2%. After 31 Dec 2022 it increases by CPI.

Question 17

There is allowances granted for fuel combustion? True or False? Where can these values be found?

Answer 17

It is True. It is listed in the Carbon Tax Act in Schedule 2.

Question 18

In Schedule two of the Carbon Tax Act, allowances are made for Fossiel fuel combustion, but also for Process emissions and Fugitive emissions. However, for two of these categories, there are basically no exemption?

Answer 18

Thats is True. In most cases there are not tax free allowances for Process Emissions and Fugitive Emissions, only for fuel combustion.

Question 19

Maximum tax free allowance afforded via Trade Exposure?

Answer 19

A maximum of 10% is allowed

Question 20

How is the Trade Exposure calculated?

Answer 20

(Imports + Exports)/(Total Production by sector or sub-sector)

Determined in a manner prescribed by the minister via Regulations

Question 21

Trade exposure allowance is up to a maximum of?

Answer 21

Maximum of 10%

Question 22

Maximum “Performance Allowance”

Answer 22

“Not exceeding five percent of the total greenhouse gas emissions”

Question 23

Base requirement to be met if you want to claim a performane allowance?

Answer 23

It is required that “action” was taken to reduce GHG emissions. If there was no action, you cannot claim a performance allowance

Question 24

Maximum of the Carbon Budget Allowance and what is the requirement to claim this allowance

Answer 24

As with the performance allowance, a maximum of 5% can be achieved, provided the company participates in the Carbon Budget System during or before the tax period.

Question 25

In order to receive the maximum of 5% GHG allowance, the company needs to participate in the Carbon Budget System. How does the company in question prove that this is being done? (Wat se bewyse moet j aanvra, of he)

Answer 25

The Department of Environmental Affairs need to confirm particiaption in writing

Question 26

What is the “offset allowance”

Answer 26

Some industries and activities are allowed to offset some of their emissions by investing in projects aim at reducing carbon emissions outside their normal activities (i.e. by cashing in carbon credits). The allowance is the maximum which may be offset in this fashion.

Question 27

What is the maximum sim of allowances that can be achieved?

Answer 27

“must only receive the sum of the allowances contemplated in Part 2 in respect of a tax period to the extent that the sum of those allowances does not exceed 95% of the total greenhouse gas emissions”

Question 28

Administration duties of the commissioner (soos van toepassing met die carbon tax act)

Answer 28

The Commissioner must administer the provisions of this Act as if the carbon tax were an environmental levy as contemplated in section 54A of the Customs and Excise Act, that must be collected and paid in terms of the provisions of that Act.

Question 29

When did the carbon tax act go into effect? What is the normal taxation period?

Answer 29

The first period was from 1 June 2019 to 31 December 2019. Thereafter it commences from 1 January to 31 December of each year

Question 30

Offset Allowance, wat is dit en wat is die maximum hoeveelheid wat j mag offset?

Answer 30

A tax payer must reduce the amount in respect of the carbon tax for which the taxpayer is liable in respect of a tax period by utilising the carbon offsets as prescribed by the minister.

The reduction of the liability for the carbont ax allowed must not exceed so much the percentage of the total GHG emissions of a taxpayer in respect of the tax period - see schedule two of the act. In most cases 10%

Question 31

Limitation of the sum of allowances

Answer 31

In schedule two of the Carbon Tax Act, the maximum allowances are listed per industry

Question 32

How is the Carbon Tax Act administered? (Seksie en jaar)

Answer 32

The Commissioner must administer the provisions of this Act as if the carbon tax were an environmental levy as contemplated in section 54A of the Customs and Excise Act, 1964, that must be collected and paid in terms of the provisions of that Act

Question 33

For the pusposes of the Carbon Tax act, define a tax year

Answer 33

1 January to 31 December for each year

Question 34

Payment of Carbon Tax (must submit yearly? Volgens watter wet wors dit geadministreer?)

Answer 34

A tax payer must submit yearly environmental levy accounts and payments prescribed by rule in terms of the Customs and Excise Act, 1964, for every tax period