According to ESKOM, carbon tax is essentially a market-based instrument and it will not be ideal to use a market-based instrument in a regulated sector. ESKOM highlighted that the intended objectives of introducing a carbon tax might not be realised, given the nature of South Africa's economy. The domestic action being proposed by South Africa is pre-empting international commitments by all countries, and this position might not be good for South Africa in the ongoing international negotiations and deliberations on climate change.