South Africa Moves Toward Carbon Budgets with New Draft Regulations

South Africa Moves Toward Carbon Budgets with New Draft Regulations

On 1 August 2025, the Minister of Forestry, Fisheries and the Environment released two draft notices for public consultation under the recently enacted Climate Change Act 22 of 2024. The first is the draft National Greenhouse Gas Carbon Budget and Mitigation Plan Regulations (GNR 6476), accompanied by the draft Technical Guidelines (GNR 6477). Together, these documents set out the framework for implementing South Africa’s new system of carbon budgets. They also detail the greenhouse gases and industrial activities that fall within their scope.

These regulations form a critical part of South Africa’s national climate policy. Their primary aim is to introduce compulsory carbon budgets for companies and sectors responsible for high levels of greenhouse gas emissions. By doing so, government seeks to align domestic action with international obligations under the Paris Agreement while accelerating the country’s shift to a lower-carbon economy.

Among the most notable provisions are requirements for companies to measure, report, and verify their emissions in accordance with prescribed standards. The regulations also establish compliance obligations, including financial penalties and additional mitigation duties for entities that exceed their allocated budgets. In practice, this means that businesses operating in energy-intensive industries will need to strengthen monitoring systems and adjust operational strategies to avoid exposure to potentially costly enforcement measures.

Stakeholders have a 60-day window to comment on the proposals, with submissions due by 30 September 2025. This consultation period provides businesses, industry associations, civil society groups, and technical experts with the opportunity to influence the design and practicality of the final framework.

If adopted, the regulations will mark a significant milestone in South Africa’s climate governance. They are expected to carry wide-reaching consequences for sectors such as mining, heavy manufacturing, and electricity generation, where emissions are concentrated. The introduction of carbon budgets underscores the state’s intention to balance economic growth with environmental sustainability and signals that companies must prepare for a stricter era of climate accountability.