Revised Carbon Offset Regulations extend Eligibility Criteria of Carbon Offsets

National Treasury published the long awaited updated draft of the regulations on the Carbon Offsets in terms of the Draft Carbon Tax Bill. The regulations provide guidance on the eligibility and administrative procedures according to which Greenhouse Gas emission reductions generated locally can be utilised to reduce entity’s exposure under the carbon tax as scheduled for implementation on the 1st of June 2019. In comparison to the eligibility criteria outlined in previous versions of the regulations the number of eligible project types and time frames has been expanded this will enable more entities to utilise low cost mitigation options to offset their carbon tax liability. The deadline for comments is close of business on 14 December 2018.