Regulating carbon markets in order to fight the effects of climate change has in recent years become an integral part of many economies around the world. Ensuring that policymakers implement market-based climate change legislation according to international best practice is an essential part to guarantee that a carbon market system operates smoothly within a country’s economy. There are many opportunities that exist in South Africa towards developing a lucrative carbon market; however, the information to implement such a system is hard to come by and complex to analyse. This dissertation will aim to shed some light on this relatively new field of the law as it will provide an overview of international best practice within the carbon market sphere. Furthermore, this dissertation will examine the legal nature of a carbon credit; analyse international instruments regulating carbon markets and discuss existing South African policies and legislation related to climate change and carbon markets. This will lead to the ultimate objective of this dissertation: to propose a possible framework for the regulation of a South African carbon market based upon international best practice. This dissertation revealed the imperative need for South African policymakers to implement legislation to conform to international best practice within carbon markets. In this regard the dissertation also revealed that the infrastructure to regulate such a market already exists within South Africa. Only subtle changes to these infrastructure systems will be required in order for to accommodate a functioning carbon market. The study revealed that the only way to convince entities around the world to emit fewer emissions and to contribute towards the fight against climate change is to attach a monetary value to emissions. Associating a price to carbon is the only way to sanction entities that produce emissions and compensate entities that mitigate emissions. A carbon tax coupled with a carbon offset mechanism, as opposed to a emissions trading scheme, would be the best option with regards to establishing a South African carbon policy. This will ensure a fair playing field, as carbon tax liable entities would be held responsible to pay the same fixed price per ton of carbon that they emit. Coupling the carbon tax with a carbon offset mechanism, trading with carbon credits, will incentivise companies to invest in “greener” technologies and to emit fewer emissions. This dissertation revealed that international best practice in the carbon market sphere, still poses significant difficulties such as price volatility associated with carbon credits; validation and verification inconsistencies within the different carbon standards; and supply and demand fluctuations. These difficulties where highlighted in this dissertation and solutions relating to these difficulties were discussed. The time has come for South Africa to enter the carbon market sphere, whether it be through the introduction of a carbon tax or otherwise. This dissertation illustrates that the infrastructure and stakeholders associated to a South African carbon market needs to be developed. If, when and how the government will actually implement such a carbon market system, remains a question to be answered.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:20801 |
| Date | January 2015 |
| Creators | Van Huyssteen, Roelof Cornelis |
| Publisher | Nelson Mandela Metropolitan University, Faculty of Law |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Masters, LLM |
| Format | viii, 216 leaves, pdf |
| Rights | Nelson Mandela Metropolitan University |
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