Balancing equity and sustainability in South Africa’s carbon tax policy

Carbon taxes were introduced to mitigate the negative effects of climate change on the environment to achieve various United Nations Sustainable Development Goals. South Africa’s carbon tax policy, implemented in 2019, demonstrates a positive contribution to reducing carbon emissions and promoting investment in renewable energy. However, the success of the carbon tax policy is contingent upon its effectiveness in mitigating both the socio-economic and environmental challenges faced by the country. The main objective of this study is to perform a comprehensive SWOT analysis of the carbon tax policy to ensure that the current policy promotes sustainable development while addressing the socio-economic and environmental challenges in South Africa. A qualitative documentary analysis, in the form of a narrative literature review is conducted. The findings of this study offer relevant guidance for South Africa, Africa, and other developing countries to consider in the development or enhancement of their carbon tax policies. The analysis revealed that the current policy should be improved by being more transparent and specific programmes should be established to support the investment in renewable energy. Further active policies and plans should be in place to protect middle and low-income households and industries that are heavily reliant on carbon. In addition, the South African government needs to engage with foreign counterparts to raise funding and devise solutions specifically catered for developing countries.