Contact

Taxing for sustainability: Assessing the competition implications of ESG-driven tax incentives

Back to top

Taxing for sustainability: Assessing the competition implications of ESG-driven tax incentives

Jerome Brink, Director in the Tax & Exchange Control practice, Reece May, Director, and Elham Shaik, Associate in the Competition Law practice, were recently featured in Tax Talk Issue 118, where they explored the competition implications of ESG-driven tax incentives in their article, Taxing for sustainability: Assessing the competition implications of ESG-driven tax incentives.

9 Jul 2026 1 min read Tax Talk Article

Jerome, Reece and Elham explain that governments across jurisdictions are increasingly using tax incentives, targeted rebates and subsidies to accelerate the transition to greener economies. While these measures are intended to address market failures and encourage sustainable practices, they do not operate in isolation. The uneven allocation of tax burdens and benefits can subtly, yet significantly, reshape competitive dynamics.

The article examines the intersection of ESG-driven tax policy and competition law, highlighting how well-intentioned incentives may distort markets by conferring selective advantages, raising barriers to entry and reinforcing the market position of established incumbents.

Click here to read more.

The information and material published on this website is provided for general purposes only and does not constitute legal advice. We make every effort to ensure that the content is updated regularly and to offer the most current and accurate information. Please consult one of our lawyers on any specific legal problem or matter. We accept no responsibility for any loss or damage, whether direct or consequential, which may arise from reliance on the information contained in these pages. Please refer to our full terms and conditions. Copyright © 2026 Cliffe Dekker Hofmeyr. All rights reserved. For permission to reproduce an article or publication, please contact us cliffedekkerhofmeyr@cdhlegal.com.

You might also be interested in

6 May 2026

by Sammy Ndolo and Valere Nyaboke

The Prevention of Fraud (Investment) Act: On the statute books but outpaced by reform

Kenya’s statutory landscape contains several laws that remain formally valid, but whose regulatory functions have been overtaken by institutional and legislative reform. These laws continue to exist on the statute books, even as newer frameworks assume their intended roles. The Prevention of Fraud (Investment) Act Cap. 485 (PFIA) exemplifies this phenomenon.

Corporate & Commercial Law

3 min read

21 Apr 2026

by Anja Hofmeyr, Calinka Murray and Safee-Naaz Siddiqi

Chatting away your protection – Are you waiving legal privilege when you use AI?

Generative artificial intelligence tools such as ChatGPT, Claude and Copilot, to name a few, have become a routine feature of modern business operations. Today’s executives and employees increasingly use these tools to summarise documents, brainstorm strategies, draft correspondence, analyse risks and mitigate exposure. Yet the rapid adoption of artificial intelligence (AI) raises an urgent and largely unresolved question for South African clients: can the use of AI tools compromise the legal privilege that protects confidential communications with lawyers?

Dispute Resolution

9 min read

18 Aug 2025

by Yvonne Mkefa, Thato Maruapula and Mpho Mhlongo

The impact of mergers and acquisitions on a designated employer’s employment equity plans

The amendments to the Employment Equity Act 55 of 1998 (EEA) took effect from 1 January 2025. The amendments to the EEA introduce a number of key changes, including the introduction of sectoral targets.

Corporate Debt, Turnaround & Restructuring

2 min read

25 May 2026

by Imraan Mahomed and Zamanyamande Twala

Does paying an employee during suspension avoid a CCMA compensation award?

This was the question in the matter of Banda v General Public Service Sector Bargaining Council and Others (LAC, case no: A2025-092122, 15 April 2026). In short, this case makes clear that even a fully paid suspension can expose an employer to a compensation award if it is procedurally or substantively unfair.

Employment Law

3 min read

2 Sep 2025

by Vincent Manko and Nomlayo Mabhena-Mlilo

The (dis)connect between section 34 of the Insolvency Act and business rescue proceedings

Section 34 of the Insolvency Act 24 of 1936 (Insolvency Act) stipulates that if a trader, as defined in section 2 of the Act, transfers a business, its goodwill, or any goods or property forming part of it in terms of a contract, without giving notice as prescribed, the transfer is void as against their creditors for six months thereafter, and it is void against the trustee and the liquidators of the estate if the estate is sequestrated at any time within that period.

Corporate Debt, Turnaround & Restructuring

4 min read

3 Dec 2025

by Alecia Pienaar

NTCSA releases practice note and updated GCCA on congestion curtailment

The National Transmission Company of South Africa (NTCSA) first submitted an application to the National Energy Regulator of South Africa (NERSA) on 24 May 2024 requesting approval for congestion curtailment to be treated as a constrained generation ancillary service for renewable energy, for purposes of addressing current grid capacity constraints experienced on the transmission network (Application) (see here where we discuss the Application in detail). The Application was approved by NERSA in early May 2025, with Reasons for Decision released towards the end of June 2025 (Approval).

Projects & Energy

4 min read

This website uses cookies to enhance the browsing experience. For more information, please see our Cookie Policy.

Accept Decline