Africa Climate Energy Environment Legislation South Africa Sustainability Tax

Sasol buys first carbon credits to meet SA’s carbon tax regulations

Integrated energy and chemical company Sasol has secured more than 100,000 carbon offset credits from Bethlehem Hydro, a South African independent power producer (IPP), in fulfilment of its obligations under the new South African carbon tax regulations.

The transaction is one of the first carbon offset transactions under the South African Carbon Offset Administration System (COAS) after it was launched earlier this year. Under the carbon tax regulations, South African companies are able to buy carbon credits from third parties to offset a portion of their carbon tax liability.

Sasol Vice President for climate change, Shamini Harrington, said the company is committed to reducing its operational greenhouse gas emissions profile through various mitigation activities, including carbon offsets.

“Carbon offsetting is recognised as a necessary tool to meet and increase climate ambition. These projects are beneficial not only from a greenhouse gas reduction perspective but also from a socio-economic one as they bring multiple sustainability co-benefits to the communities and areas in which they are located,” Harrington explained.

Also read: Sasol warns of annual loss as lower oil price and pandemic weigh

Source: EsiAfrica via CrudeMix Africa

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