SA Carbon Tax Rate Increases to R236/tCO₂ in 2026 — Impact on CBAM Credit

SA Carbon Tax Rate: R236/tCO₂ for 2026

South Africa's carbon tax, administered by SARS under the Carbon Tax Act 15 of 2019, increased to R236 per tonne of CO₂ equivalent for the 2026 tax year (effective 1 January 2026). The rate increases annually in line with CPI plus 2%.

How the Credit Works Against CBAM

Under CBAM rules, any carbon price paid in the country of origin can be deducted from the CBAM certificate obligation. For SA exporters, the R236/tCO₂ rate (approximately EUR 11.80/tCO₂ at current exchange rates) reduces the net CBAM liability proportionally to the embedded emission factor.

For a steel exporter with an embedded emission factor of 1.928 tCO₂/t, the SA carbon tax credit reduces the CBAM cost by approximately EUR 22.74/t — from EUR 126.10/t gross to EUR 103.36/t net.

What SA Exporters Need to Document

To claim the SA carbon tax credit, your EU importer must be able to demonstrate to the competent authority that a carbon price was paid in South Africa. This requires a SARS carbon tax compliance certificate or equivalent documentation. Use the CBAM Compliance Checklist to ensure you have the correct documentation.