The South African Carbon Tax Act (No. 15 of 2019) came into effect on 1st of June 2019, with the first phase set to run up until December 2022. Good news for the agriculture sector is, they are not included in the first phase, it is uncertain if the sector will be included in the second phase(2023-2030).
From 2022 onwards farmers could be paying both direct and indirect carbon taxes i.e. Direct emissions sources ( nitrogen dioxide emission, urea application, liming, biomass burning, land-use change, diesel generator with combined capacity 10MW or greater) and Indirect emission sources ( electricity, diesel, petrol, and nitrogen dioxide emissions). Farmers can reduce carbon emissions by improving input efficiencies and using low carbon alternatives.