10.7 Market-based instruments In 2006, Government published a draft Environmental Fiscal Reform Policy Paper entitled A Framework for Considering Market-Based Instruments to Support Environmental Fiscal Reform in South Africa. This policy paper recognised the role for environmentally-related taxes to complement existing regulatory policy interventions and address environmental problems such as climate change. Government has since introduced the following climate change-related measures: the electricity generation levy; motor vehicle emissions tax; the levy on incandescent light bulbs complemented by a range of tax incentive measures to support renewable energy investments (depreciation allowances for renewable electricity generation and biofuels production); investments in projects under the Clean Development Mechanism (CDM) (that is, income tax exemption for revenues from the sale of certified emission reduction units resulting from CDM projects); biodiversity conservation and management; and the proposed energy efficiency savings tax allowances. As part of the process of exploring more comprehensive reforms for addressing climate change, the National Treasury published the carbon tax discussion paper entitled Reducing Greenhouse Gas Emissions: The Carbon Tax Option for public comments in December 2010. The paper elaborated on the role for carbon taxes as a policy measure to stimulate behaviour changes among producers and consumers in favour of less energy intensive, lower-carbon emitting alternatives. 10.7.1 Carbon Pricing