Bringing together legal experts, project developers and market specialists from SACMA, the session unpacked how the carbon tax is moving beyond policy and becoming a practical mechanism shaping investment decisions, carbon pricing and market demand.

The dialogue highlighted both the opportunities and challenges of operating in a regulated carbon market, offering real insights into how businesses, developers and investors can navigate and benefit from the system.

You can now watch the full conversation on demand below.

Executive Summary

The webinar explored how South Africa’s carbon tax is evolving from a regulatory compliance tool into a market-shaping mechanism that is driving demand for carbon credits and influencing investment decisions.

Speakers highlighted that the tax introduces a predictable price signal, enabling project developers and investors to build viable carbon projects with clearer revenue expectations. The inclusion of carbon offsets within the tax framework is creating a functional domestic carbon market, although supply constraints and regulatory complexity remain key challenges.

The discussion also emphasised that long-term success depends on policy certainty, strong project development capacity and scalable supply, particularly as demand for offsets is expected to significantly outpace supply in the coming years.

MODERATOR:

• Olivia Tuchten, Promethium Carbon

SPEAKERS:

• Andrew Gilder, Director, Climate Legal; Chair, SACMA
• Henk Saer, Managing Partner, Brundtland
• Vivek Duga, Co-Founder & Director, WEACT
• David Cornish, General Manager, Energy Systems South Africa

KEY TAKEAWAYS

Carbon Tax Is Now a Market Driver

South Africa’s carbon tax is no longer just a compliance mechanism. It is actively shaping the carbon market by creating demand for credits and establishing a clear pricing benchmark.

Price Signals Are Unlocking Investment

With tax rates increasing annually, the market now has a predictable price trajectory. This gives investors and developers confidence to finance long-term carbon projects.

Supply Will Struggle to Meet Demand

Demand for carbon credits is expected to significantly exceed supply, creating a tight market that could drive prices and increase competition for quality projects.

Project Development Is Complex but Critical

Developing bankable carbon projects requires strong technical capability, clear measurability and long development timelines, making experienced partners essential.

Policy Certainty Will Determine Market Growth

Long-term clarity on tax rates, regulations and eligibility will be key to scaling the market and attracting sustained investment into South Africa’s carbon economy.