Carbon Tax Advisory

Let us Help You

Through the implementation of carbon tax, South Africa is honouring its commitment under the Paris Agreement to reduce its greenhouse gas (GHG) emissions to levels communicated in the Nationally Determined Contribution (NDC) by 2030. The Carbon Tax Act (GN 42483) of 2019 was designed to tax companies on certain Scope 1 GHGs emitted from their activities as per Schedule 2 in the act.

Schedule 2 contains thresholds that must be exceeded by the taxpayer in order for carbon tax to be triggered. The concept of operational control is very important when there are many sites or many companies under one umbrella. Yellow Tree can assist by performing a carbon tax eligibility assessment for a nominal fee. This assessment would include a site visit and would evaluate the nett megawatts of installed capacity for combustion appliances, as well as the nature of the process, fugitive emissions on site, and operational control.

The calculation of GHGs (which must be reported annually in March on the South African Greenhouse Gas Emissions Reporting System [SAGERS]) and the corresponding carbon tax which must be paid in July, became increasingly complex in 2022 with the introduction of Tier 3 reporting. Tier 1 reporting is simple and employs IPCC codes. Tier 2 is relatively simple and makes use of country-specific codes. However, Tier 3 is complex and involves the calculation of site-specific emissions factors using gross calorific values (GCV) and carbon fractions. In addition, the application of oxidation factors to reduce a company’s carbon tax liability is possible and beneficial.

All of this to say, we are here to help. With an intimate knowledge of the carbon tax Act, we support many JSE-listed companies in calculating their carbon tax and performing their submissions. We leverage the various allowances that are available (trade exposure allowance, carbon offset allowance, performance allowance etc), and use our specialist chemical engineering knowledge to ensure that carbon tax is mitigated fairly and not overstated, providing you with the peace of mind that compliance brings.

We have saved clients many hundreds of thousands of Rands through the careful and correct application of the law and engineering principles in calculating GHGs and carbon tax. We would love to help you too.

Who can I speak to?

Caitlin heads up our Carbon Tax Advisory Department and would love to support you.

cape town carbon tax

Engineering knowledge

To qualify which plant and processes trigger carbon tax, to quantify these, and to accurately calculate and mitigate carbon tax.

air quality

Legal Advice

To reduce your risk and to ensure that you are compliant with SARS and the DFFE.

we will meet you


We work closely with both the DFFE and SARS to ensure that we are always abreast of new legislation.

stack emissions testing

Attentive Service

We are a small bespoke business with specialist knowledge, able to provide you with highly attentive service.

Years in the Business

Number of Carbon Tax Clients in 2023

Carbon Tax Non-compliances with SARS

Chemical Engineers, Scientists, & Support Staff