Mr Cecil Morden, Chief Director, Economic and Tax Analysis: National Treasury added that there are two types of intervention for consideration in carbon tax. These are the regulatory intervention and the market-based intervention. According to National Treasury both interventions work in tandem in a carbon pricing system. The use of tax to reduce emissions could be approached in two different ways -- through carbon tax or remission tax. While the outcomes of both are the same in theory, they both differed in practice, especially in terms of institutional mechanisms, market structure and interventions.