Sasol said it welcomes recent policy announcements made in support of South Africa’s energy transition.
The European Union (EU) and the South African government have agreed to launch negotiations in creating a ‘Clean Trade and Investment Partnership’ to advance South Africa’s transition to a lower-carbon economy.
This will include Sasol’s sustainable aviation fuel, at its Secunda Operations, where the EU is part of an export market.
Simon Baloyi, President and CEO of Sasol, said “while we progress our strategic ambitions, I am heartened by these recent developments in the policy landscape by the South African government and the EU. It is a reflection of the importance of the ties between both regions. These mark a significant step in securing South Africa’s sustainable, low-carbon energy future with Sasol as a cornerstone to this ambition, while enabling the country’s industrial competitiveness. With our Secunda Operations as a key asset, the transition must happen at a pace that is in line with market demand and technical feasibility.”
Sasol also said it is encouraged by the focus on driving economic growth through lower-carbon industrial policy, reflected in the 2025 Budget Review published by National Treasury on Wednesday, 12 March 2025, which indicates a promising policy direction on carbon tax that will enable South Africa’s broader energy transition.
Sasol said most promising, is the retention of a basic tax-free allowance at 60% until at least 2030, as opposed to the 10% step down of this allowance from 2026, followed by further reductions annually thereafter as contained in the Phase 2 Carbon Tax discussion Paper.
The organisation is also pleased by the adoption of a higher offset allowance, as well as energy efficiency incentives extended through the 12L rebate through to 2030.
Baloyi said these, along with other policy measures, must incentivize and enable large investments into South Africa’s energy transition efforts to support energy security, economic growth and employment.