Minister of Forestry, Fisheries and the Environment Dion George recently published the Draft National Greenhouse Gas Carbon Budget and Mitigation Plan Regulations along with the Draft Technical Guidelines for public comment, marking a further step towards implementing South Africa’s response under the Climate Change Act 22 of 2024, according to Anton Ackermann and Alistair Young of Cliffe Dekker Hofmeyr.
The draft regulations establish a mandatory carbon budgeting system for high-emitting sectors and apply to data providers whose emissions of listed greenhouse gases exceed 30 000 tonnes of CO₂-equivalent annually. They outline how carbon budgets will be allocated, monitored and enforced, and require the submission of mitigation plans describing the actions to be implemented to remain within allocated budgets. The first commitment period is set to run from January 1 next year to December 31, 2030.
For affected sectors, the implications are significant. Non-compliance may result in higher carbon tax rates, fines of up to R10 million or imprisonment. Compliance requires detailed mitigation plans, annual reporting and potentially new operational and financial resources to stay within allocated limits.
It is important to note that the draft regulations and guidelines are open for public comment for 60 days from publication, meaning stakeholders have until the end of September 2025 to respond. Given the potential financial and operational impact, it is essential that companies in the electricity and energy-intensive sectors engage actively with this process to ensure that the final regulations are effective and practical.
