Presentation template - WWF South Africa

Tax Design Considerations• Actual measuredemissions– Can be precisely targeted –as emissions rise, polluterstax liability rises.– Administrativelychallenging: a largenumber of emissionsources need to bemonitored and measured.– Requires technologicalcapacity, systems andhuman resources tomeasure and monitor• Upstream Taxes– Close correlation betweenenergy source carbon contentand eventual levels of emissions.– Upstream – involves fewertaxpayers. Lower administrativecosts if carbon tax is leviedupstream on producers ratherthan downstream on fuel users.– Piggyback on existing taxsystems.– Upstream tax systems should becombined with a crediting systemto encourage development andadoption of carbon capture andstorage technologies.12