National Treasury Invites Comments on Carbon Credit Market Proposals

Posted 29 October 2025 Written by Acts Online
Category Tax

Brought to you by SA Legal Academy: In terms of the Carbon Tax Act, No. 15 of 2019, National Treasury has issued a consultation paper proposing a framework for the development of the South African carbon credit market.

The consultation paper focuses on key recommendations to refine the domestic carbon offset system, which is currently regulated under the Carbon Tax Act, No. 15 of 2019 and the Carbon Offset Regulations. These proposals seek to align South Africa’s market with international standards, specifically Article 6 of the Paris Agreement, to facilitate broader participation in carbon trading.

National Treasury has requested written submissions on these proposals by no later than 1 December 2025. The initiative aims to address structural barriers in the current ecosystem and enhance the role of the South African Carbon Offset Registry. Key areas of focus in the consultation include:

  • The standardisation of carbon credit issuance and tracking mechanisms;
  • The expansion of eligible project types for domestic carbon offsets;
  • The integration of voluntary carbon markets with the formal carbon tax regime; and
  • Procedures for the validation and verification of domestic carbon credits.

The implementation of these recommendations is intended to provide clearer price signals for emitters and improve market liquidity as the carbon tax rate continues to escalate in future phases. Stakeholders are encouraged to evaluate the technical requirements for project eligibility and the administrative processes for credit registration.

Click here to view the National Treasury public comment portal for the full consultation document and submission details.

What this means for you, your business, or your clients

  • For yourself: Update your professional advisory toolkit to include the new verification standards for carbon credits to maintain compliance with evolving sustainability reporting requirements.
  • For your business: Assess the impact of the proposed market structures on the long-term cost-efficiency of using carbon offsets to mitigate liabilities under the Carbon Tax Act, No. 15 of 2019.
  • For your clients: Advise clients in high-emission sectors to conduct a gap analysis of their existing carbon offset projects against the proposed eligibility criteria before the 1 December 2025 deadline.

Originally published at https://legalacademy.co.za/news/read/carbon-credit-market-development-proposals-out-for-comment

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