NEWSFLASH: PREPARING FOR 2021 GREENHOUSE GAS (GHG) REPORTING AND CARBON TAX
As 2020 draws to a close, companies should be aware of their upcoming greenhouse gas (GHG) reporting and carbon tax responsibilities in 2021.

Companies need to be proactive in addressing:
  • Carbon offsets: generating, buying and selling
  • Performance benchmarking allowances
  • Trade exposure allowance
SARS has confirmed the automatic renewal of company carbon tax licenses for the 2020 period, which ends on 31 December 2020, with payment due by the end of July 2021.

The 2020 carbon tax payment will be based on the GHG emissions submitted for the 2020 calendar period, so it is important to do applicable measurements at the end of December 2020.

GHG emissions calculations need to be submitted to the Department of Environment, Forestry and Fisheries by 31 March 2021 via the South African GHG Emission Reporting System.

Companies are also encouraged to consider the process of moving to a higher tier methodology for calculating their GHG emissions (e.g. Tier 2 or Tier 3) to potentially reduce their base GHG emissions.

Key dates to remember:
  1. 31 December 2020 end of 2020 carbon tax period
  2. 31 March 2021 submission of GHG Emissions
  3. 31 July 2021 submission of carbon tax payment for the 2020 period

Please contact us should you have any questions or need assistance.

The Cova Advisory Team
info@cova-advisory.co.za
072 853 6918