Chemical Technology February 2016

WASTE

MANAGEMENT

PETROCHEMICALS

(The determination of the emission factors used in the Tables is not discussed in the Bill but the interested reader is referred to the IPCC Guidelines for National Greenhouse Gas Inventories [2] and to the article on the regional emis- sion factors for the power sector in Southern Africa [3]). “emissions intensity” means an indicator of the result of the measurement of the quantity of greenhouse gas emissions in relation to an activity. “emissions intensity benchmark” means the result of the measurement in respect of an activity that creates green- house gas emissions— • expressed as a predetermined value of the quantity of specified greenhouse gas emissions; • in relation to an activity that is differentiated from other activities by means of a product, a type of fuel or a technology; and • compared against the quantity of greenhouse gas emis- sions, in relation to an identical activity undertaken by another person. “fugitive emissions” means emissions that occur from the release of greenhouse gases during the extraction, process- ing and delivery of fossil fuels. “greenhouse gas” means gaseous constituents of the atmosphere, both natural and anthropogenic, that absorb and re-emit infrared radiation, and includes carbon dioxide (CO 2 ), methane (CH 4 ), nitrous oxide (N 2 O), hydrofluoro- carbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF 6 ).

“industrial process” means a manufacturing process that chemically or physically transforms materials. “Minister” means the Minister of Finance. “person” includes a partnership and a trust. “process emissions” means greenhouse gas emissions other than combustion emissions occurring as a result of intentional or unintentional reactions between substances or their transformation, including the chemical or electro- lytic reduction of metal ores, the thermal decomposition of substances, and the formation of substances for use as product or feedstock. “product use” means greenhouse gases used in products and product applications. “Republic” means the Republic of South Africa. “taxpayer” means a person liable for the carbon tax in terms of section 3. “tax period” means a calendar year period in respect of which tax is payable. The numbering used in this commentary will correspond to the Sections in the Draft Bill. Persons subject to tax

3 A person is— a taxpayer; and

b. will pay an amount calculated by a formula for the calen- dar year starting January 1, 2017, and thereafter each calendar year.

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Chemical Technology • February 2016