South Africa COAS

South African companies subject to the carbon tax can use the Carbon Offset Administration System (COAS) to reduce their greenhouse gas liabilities, up to a maximum of 5% of total emissions. Currently, only three standards are eligible under COAS: Clean Development Mechanism (CDM), Verified Carbon Standard (VCS) and Gold Standard (GS), and carbon projects must be located in South Africa. As of 2025, the tax is fixed at ZAR190 (around $10) per tonne of CO2 equivalent, but is likely to increase from 2026 onwards. This assessment reflects carbon offsets generated by projects eligible under COAS. It reflects a transaction size of 10,000 tonnes of CO2 equivalent and an emissions vintage of the last five years switching every July.