Exacerbated by rising energy costs and the country’s struggle to reduce its carbon footprint, load shedding continues to be one of South Africa’s most pressing challenges, influencing everything from household routines to business operations. For businesses and households, the stakes are high, as the need for reliable and sustainable energy solutions grows more urgent. In this thought leadership piece, Sarah Collins, CEO and founder of Wonderbag, shares her insights on how the Wonderbag is not only helping South Africans navigate the energy crisis but also playing a key role in the country’s carbon tax and carbon credit initiatives, offering a simple yet powerful solution to address both energy instability and environmental impact.
South Africa’s carbon tax has created a compliance market where companies are now required to reduce their carbon footprints. This presents an exciting opportunity for businesses to engage in carbon offset programmes, such as purchasing carbon credits to offset their emissions. A carbon tax is a government-imposed fee on the greenhouse gas (GHG) emissions from burning fossil fuels like oil, gas, and coal. The tax is calculated based on the amount of carbon dioxide (CO2) emissions produced, with businesses or individuals who burn these fuels required to pay the tax. The idea behind the carbon tax is to create a financial incentive for companies and consumers to reduce their carbon emissions by making low-emission alternatives more attractive.
However, for many companies, the concept of carbon credits remains an abstract one, tied mostly to larger-scale projects that are often far removed from the communities they aim to support. By leveraging the carbon credits generated through the energy savings from Wonderbag, we have created a unique model that not only helps businesses meet their carbon obligations but also drives financial support back into the communities that need it most.
South Africa’s carbon tax not only targets large-scale emitters but also aims to foster a greener future by encouraging companies to reduce their emissions. For businesses that cannot reduce their emissions internally, they are liable for paying the carbon tax. However, companies can reduce their liability by utilizing carbon credits. Currently, the allowance is up to 10% for combustion emissions and up to 5% for industrial process and fugitive emissions. Starting in 2026, these allowances will increase to 25% for combustion emissions and 20% for industrial process and fugitive emissions, providing greater flexibility for industries to manage their carbon tax obligations while also encouraging the development of South Africa’s carbon market.
Transformation can be simple
Transforming how households cook, the Wonderbag, a non-electric heat-retention cooker, empowers individuals to prepare meals without relying on sustained electricity or gas, alleviating the pressure on South Africa’s strained energy infrastructure. But its impact extends far beyond just energy savings—Wonderbag’s model is uniquely positioned to engage with South Africa’s carbon tax and carbon credits, aligning environmental sustainability with social empowerment.The core principle behind an effective carbon tax is that it sets a stable, rising price trajectory high enough to drive meaningful emissions reductions and the scaling of clean technologies over time. The true strength of Wonderbag lies in its ability to harness citizen-driven change. By providing individuals and communities with the
tools to cook with minimal energy, we enable them to reclaim control over their daily lives and reduce their dependence on an unreliable grid.
This citizen-led approach doesn’t merely offer relief from load shedding but empowers people to make a tangible impact on their environment. Picture a family returning home from work to a warm meal, cooked throughout the day using a Wonderbag—powered only by the heat retained in the bag. This simple yet powerful shift in energy use can be replicated across communities, driving sustainability and resilience while reducing our carbon footprint.
How businesses can fuel active citizenship
As the founder of Wonderbag, I have witnessed firsthand the power of simple, sustainable solutions to address both energy crises and social inequality. However, the question remains: how can we accelerate corporate buy-in to this model, beyond mere compliance with carbon tax regulations?
While many companies are beginning to understand the importance of carbon tax and the potential of carbon credits, we still see a gap in awareness and engagement, particularly when it comes to community-based projects like Wonderbag. To truly make a difference, we need to make it easier for corporations to engage with grassroots solutions, and for them to see the value in investing in community-based innovation.
Wonderbag is already a pioneer in this space, but we need more companies to realise that carbon credits are not just a compliance tool—they are a powerful means of creating tangible, positive change in the communities that need it most. As the government allows 20% of emissions to be offset with carbon credits, the door is open for companies to invest in projects that go beyond simply reducing their carbon footprint; they can invest in solutions that support the health, education, and economic empowerment of their workforce, their supply chains, and their neighbouring communities.
Democratising Carbon Funding
The democratisation of carbon funding could be a game-changer. By directing resources from major polluters to community-based projects like Wonderbag, we can reduce the barriers to entry for smaller players and empower local entrepreneurs to develop their own solutions to energy and environmental challenges and in essence, create a more equitable, sustainable economy where everyone has a stake in the future.
The Wonderbag model exemplifies how community-based solutions can address the dual challenges of energy instability and climate change.A carbon tax encourages the adoption of cleaner technologies and energy-efficient practices, By empowering citizens to take control of their energy use and engage in local solutions, we are creating a more resilient country—one where individuals, communities, and corporations work together toward a sustainable, just energy transition.
As we look toward the future, the question is not whether we can address the energy crisis, but how quickly we can harness the power of citizen action, corporate engagement, and carbon funding to create real, lasting change. The time to act is now, and Wonderbag is leading the way with existing offers on our platform to South Africans that encourage active citizenship.
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