This policy implements a carbon tax which covers fossil fuel combustion emissions, industrial processes and product use emissions, and fugitive emissions such as those from coal mining. The initial marginal carbon tax rate is set at R120 per tonne of CO2e (carbon dioxide equivalent). Taking into account various thresholds, the effective tax rate is much lower and ranges between R6 and R48 per tonne, depending on the industry. The tax came into effect starting from June 2019.

Most Recent Amendment to Carbon Tax in 2024: "Rates and Monetary Amendment Act, 2024"
- Raised the rate of carbon tax on GHG emissions to R190 per tonne of CO2e