This paper reviews the key findings of a modeling analysis exploring the implications of the South African carbon tax. A carbon tax, in conjunction with the recycling of revenues, has been designed by the National Treasury as one of the key mitigation instruments in helping South Africa meet its international commitments to reduce its greenhouse gas (GHG) emissions by 42 percent relative to business-as-usual by 2025 and for emissions to follow a ‘peak plateau and then decline’ trajectory. The carbon tax is also expected to support a structural change in the South African economy and preemptively avoid any risks to the economy that might arise from its trade partners introducing Border Carbon Adjustments.