South Africa took its first step towards monetizing carbon emissions as Finance Minister Trevor Manuel used his budget speech to announce a precedent-setting levy on the sale of electricity generated from non-renewable resources. This move will begin the process of financially differentiating energy from different sources. The initial levy is small, at 2c per kWh (while a typical household pays around 40c per kWh), but opens the door to improving competitiveness of clean energy.
Chamsa Western Cape, the umbrella body of organised business, predictably claimed the levy would be bad for business and hit poor people hardest. In a country with unrealistically low electricity tariffs - even with the increase that has also been announced - the carbon levy is not the problem - the real concern is what I wrote about yesterday: individuals being discouraged from generating their own power from renewable sources.
[Sources: Cape Times and Cape Argus, 21 February 2008]
And the Minister even worked out the carbon impact of his budget efforts:
It estimated that since the beginning of 2008, to the tabling of the Budget, the National Treasury's work caused R38 000 kg of carbon dioxide emission through aeroplane flights and motor vehicle transport.
There were also 37 t of paper used - the equivalent of sacrificing 726 trees. The Budget documents were however printed on ‘triple green' paper, which is chlorine free, biodegradeable, and met the standards of sustainable forestation.
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