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The document proposes a carbon offset mechanism to allow South African firms to reduce their carbon tax liability by up to 10% of actual emissions. It establishes that only South African-based credits from projects outside the carbon tax net are eligible to avoid double counting. The paper identifies a potential national demand for offsets of up to 30 million tonnes of CO2e per annum, with a projected supply exceeding 50 million tonnes, largely driven by land-use, forestry, and renewable energy projects. It suggests an initial reliance on international standards (CDM, VCS, GS, CCBS) while proposing the medium-term development of a domestic standard managed by the Designated National Authority (DNA), supported by an independent expert committee, a national registry, and accredited third-party verifiers.